The trusted voice of the auto industry for more than 25 years Issue 1-2015 www.autofile.co.nz 13 January 2015

In this issue Finance sector raises p12 Registrations in Japan fall p16 Southland regional report issues with guidelines p22 Honours in vehicle industry p28 Huge year for used imports n industry organisation considering submissions received Commission’s court action against p31 Sales outrun 1984’s record has flagged up wide- by December 23. Motor Trade Finances (MTF) has ranging concerns about However, the Financial yet to be resolved. p32 Ford Ranger topples Hilux Athe government’s draft responsible Services Federation (FSF) – which The government says a lending code. has 47 members, including many key feature of the reforms is The document, which is at the in the automotive industry – has introducing lender principles and centre of the clampdown on loan drawn attention of the Ministry responsibilities under the CCCFA. sharks, will offer guidance on for Business, Innovation and These aim to reinforce and lender responsibility principles Employment (MBIE) to what it set good practices to protect included in last year’s Credit feels are serious flaws. consumers, and promote Contracts and Consumer Finance These include the timeframe informed choices and effective Specialised Amendment Act (CCCFA). for developing the code and costs competition in the market. The code’s final version will to industry. The principles require lenders training that’s be published by March “to give In addition, loan and default to exercise care, diligence and proven to lenders time to adapt processes fees providers can charge are up skill when advertising credit, and increase profits as necessary to comply” after in the air because the Commerce before and after approving loans. [continued on page 4] Agency serves exemption warning Sports car he NZTA is advising of some “serious safety concerns”. Ian Baggott, the NZTA’s range expands importers of modified and The vehicles had been adapted manager of technical support and low-volume vehicles to by U-Drive Mobility (UDM) to motor vehicle certification, told Tfollow the correct channels to ensure transport people with disabilities. Autofile this matter is a reminder they are roadworthy in this country. They were deemed for the industry to follow LVV The agency recently issued unroadworthy when the NZTA rules from the outset – and before exemptions from the low-volume revoked their certifications after modifications are completed. vehicle (LVV) process for six of talks with the Low Volume Vehicle “The system and its LVV eight modified Skoda Yetis after Technical Association (LVVTA), standards have been set up to guide ordering their removal from which alerted the agency to issues people through the process using service in December 2013 because early in the process. well-developed methods,” he says. p14 [continued on page 8] ACCESSORY BUNDLING Retro Vehicle Enhancement MORE SALES CREATE AN www.rve.co.nz EXCLUSIVE MODEL MORE PROFIT 0800 RETRO 4 U FOR YOUR BRAND CUSTOMERS FOR LIFE

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editor’s note

Call Steve Owens now on 021 947 752 Complex issues facing the industry

he government believes its compliant companies flouting responsible lending code the law. will meet the purposes of A survey of FSF members in theT Credit Contracts and Consumer 2014 estimates compliance costs to Finance Amendment Act (CCCFA). date – outside the loan-shark laws Editor Advertising The aim is for consumers to – comes to about $40 million over Darren Risby Brian McCutcheon [email protected] [email protected] have access to information to the past few years. 021 137 5430 021 455 775 make well-informed decisions All of them will again have to about credit and be protected from plough hundreds of thousands Journalist & Online producer Designer underhand practices of loan sharks. of dollars into auditing processes Cameron Carpenter Adrian Payne [email protected] [email protected] The code also aims to give and systems, revising documents, finance providers certainty in redeveloping websites, training Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. complying with the law without staff and monitoring compliance. Back copies are also available on the website. be subjected to unnecessary FSF members will do what’s Copyright: Published twice monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. compliance costs. required because they are All statements made, although based on information believed to be accurate and reliable, C The changes are all part of already responsible lenders and cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without written permission, M enforcing updated legislation with have no choice. whether by copying or any other means, is strictly forbidden. All rights reserved. ISSN 0112-3475 (print) / ISSN 2350-3181 (online) Y many having to be in place by June 6. But will the loan sharks?

CM But the finance and automotive What’s going to be done to force industries will have to foot them into line or out of business? MY associated set-up and continued After all, it’s these shady CY compliance costs, which in turn operators the government’s guns CMY may result in lower margins and have in their sights.

K higher policy premiums. This issue of Autofile also happy The Financial Services features a thought-provoking WITH YOUR CURRENT Federation (FSF) raises many valid article on the Kiwi fleet penned by

concerns in its submission on the Kit Wilkerson, policy analyst and ARE YOU VEHICLE SUPPLIER draft lending code. adviser at the Imported Motor ? Why issues surrounding the Vehicle Industry Association. WHAT YOU GET WITH loan-shark laws aren’t attracting “What’s safer than a new more media attention is bordering car? How about a safer car? I ask on incompetence – with a few because I hear concerns about our exceptions, such as the Sunday ageing fleet,” he writes. Star-Times – because their While many people think Reliability implications are as far-reaching as modern cars are safer and more First choice for NZ dealers Stock Ready the Consumer Law Reform Bill. efficient, other issues include the for 20 years foR Shipping Extensive range of pre-purchased Perhaps they have been parked health and social costs of accidents. stock available for shipping NOW in the too-hard box, although some Then there’s how much cars expeRience “journalists” appear content to trot pollute the environment – not only Our buyers are knowledgeable about NZ dealers requirements tRue dealeR out government press releases as through tailpipe emissions, but also WholeSale gospel and virtually verbatim. during the manufacturing process. Fixed fee includes all Japan side: choice transport, documents and taxes But back to the FSF – its 47 There is an argument for using 100,000 vehicles per week available members include the finance more than a white line in the sand through our auction search engine divisions of BMW, Mercedes-Benz, StRictly – vehicle age – as a proxy. dealeR only Nissan, Toyota, Yamaha, Ateco, We all want a cleaner, safer and peace of Mind Heiwa Auto never sell or export vehicles Enterprise Cars, Giltrap and the more efficient fleet, but how we get All vehicles Ramp Inspected to private buyers before departure Aqua Group. Others include the there may well be more complicated. fleets, Protecta, Provident, MTF, Wilkerson would like to hear the Greg Bardsley Jason Robb Autosure and Avanti. views of Autofile readers on this ph: 0279 363 595 email: [email protected] ph: 027 413 3222 email: [email protected] There are many more and it’s issue, so get scribbling. www.heiwa-auto.co.nz hardly a list of loan sharks or non- Darren Risby, editor

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[continued from page 1] Compliance costs mount up They also require compliance with McMorran says issues have been alone what may be required to specific rules. identified in proposed disclosure More online fulfil them. The purpose of the lending regulations, which – depending Visit www.autofile.co.nz to find “The FSF urges regulators to code is to expand on the principles on what the final version out more about the draft responsible take account of the timeframe and responsibilities, and set in will look like – will lead to lending code. and ensure changes to The website also has more on the Financial stone guidance on how finance substantial and expensive responsible lenders’ systems Services Federation’s concerns about the providers implement them. changes. proposals. and processes are mostly “The code isn’t binding, “The FSF has many They cover policy documents, advertising, minor unless a significant nor is it a safe harbour,” says members who operate in assessing applications and the lack of consumer benefit will result. the MBIE. “However, evidence Australia and New Zealand,” definition for “substantial hardship”. “We ask the Commerce It has also flagged up issues in the of compliance is to be treated she says. Commission be given flexibility guidelines about what happens as compliance with lender “Australian divisions are when borrowers default. to delay enforcement action responsibility principles.” undergoing major upgrades to against a lender showing systems to accommodate demands willingness to comply but BRINGING IN THE CHANGES from commercial developments the FSF and its members. They unable to achieve this within the The FSF says a significant area of and government changes. These are willing to comply with what’s timeframe.” concern is compliance with the must proceed despite changes to required, but may be unable to The federation also questions lending code as soon as it’s issued. New Zealand laws. do so as a result of the impossible the lending code being It warns there will be gaps “It also means it is likely – due to timeframe.” described by the MBIE as not a in policies and procedures even lack of resources – that their New McMorran warns just “safe harbour” even though its for already responsible lenders Zealand documents and systems conducting an analysis when the draft introduction says proof between what they do and what may not comply with local law. code and regulations are finalised of compliance will be treated will be required. “It’s impossible to to determine what gaps exist will as evidence of complying with Executive director Lyn overemphasise the concern of take time they don’t have – let responsibility principles. 

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t The FSF believes these requirement for lenders to lenders to quantify the cost of statements contradict each provide six-monthly statements to changing systems, processes and other and compliance with the borrowers regardless of anything policies to comply until the code code should – and effectively changing since the previous is finalised. does – provide a safe harbour for statement, or when the loan “Once that happens, most lenders. has a fixed interest rate and the members believe they will at “Certain aspects of the borrower has been provided with a least incur the cost of one further code are vague and open to repayment schedule at the outset. staff member at a relatively interpretation,” adds McMorran. “Six-monthly statements senior level to monitor systems “The regulators need to state provide no useful information for compliance and manage the how they intend to enforce it, to borrowers they don’t already change process.” such as working with the industry have,” says McMorran. The FSF stresses the CCCFA’s towards compliance rather than “However, one FSF member requirements and lending seeking test cases to obtain estimates the cost of postage Lyn McMorran, executive director of the FSF code aren’t the only regulatory precedents.” alone to send them out is about personalised calculations as to or compliance issues finance $50,000 each time, so that’s a how long it will take to repay companies have faced in the past STACKING UP THE COSTS $100,000-plus per annum cost for balances and interest costs if they few years. The FSF believes it is difficult to no consumer benefit. only make minimum monthly They have already had to quantify the cost of compliance “It is estimated creating a repayments. comply with the Financial or break it down based on the systems change that allows It is estimated this systems Service Providers (Registration lifecycle of loans, particularly lenders to provide individualised build will cost between $200,000 and Disputes Resolution) when it’s still unclear what lenders information, such as the exact and $600,000 per lender, while Act, Financial Advisers Act, are expected to comply with. date on which the right to analysis of this in Australia where Anti-Money Laundering and Some of the fine print in cancel expires, will cost between such calculations are needed Countering Financing of Terrorism the CCCFA, lending code and $100,000 and $200,000 per lender.” suggests they have had no effect Act, as well as regulations for disclosure regulations will create Proposed disclosure on how people pay off debts. non-bank deposit-taking lenders. costly systems issues. regulations suggest credit-card “Beyond specific examples, A 2014 survey of FSF members  It says these include a issuers provide holders with the FSF believes it’s difficult for estimates the cost of compliance [continued on page 6] Getting up to speed a fresh approach Previous issues of Autofile have shark laws passed their third covered the government’s loan- reading with supplementary order to dealer finance shark laws in depth with more paper amendments. associated information posted These addressed industry online at www.autofile.co.nz. disquiet about canning commission Back copies of the magazine on some credit-related insurance can be downloaded from the products, such as guaranteed asset “magazines” section of website. and payment protection, under Below is a small selection of certain circumstances. excerpts from articles on the November 7: MTF says it’s unable legislation and related matters to establish ultimate liability from 2014 with their issue dates in relation to loans after the for ease of reference. quantification judgement in the February 10: The Credit Contracts Sportzone case was released. and Financial Services Law Reform The Commerce Commission Bill could affect the way car says the decision clarifies rules dealers carry out the finance side lenders must comply with when of their businesses unless changes charging fees. are made to proposed legislation. November 21: Issues have The Financial Services been raised about a discussion Federation (FSF) has raised serious document on improving the questions on how vehicle finance information finance providers may be hit. The bill includes a supply to people taking out loans. code of responsible lending and The government has put out we’re in this together bans for non-compliance. the proposals for consultation. June 7: The FSF is delighted the However, the FSF has highlighted government took on-board its issues around the timescale and www.MyFinance.co.nz 0800 385 385 concerns just before the loan- costs involved.

www.autofile.co.nz | 5 news

[continued from page 5] Loan fees and charges still in limbo t to date – outside the amended CCCFA and lending code – comes to nearly $40 million. This has been spent on areas such as auditing processes “Achieving balance between on changes, new systems and documents, web development, consumer protection and staff training, advice to ensure compliance and monitoring industry flexibility is difficult.” compliance. The $40m excludes time and – Paul Goldsmith, Minister of Commerce human resources FSF members and Consumer Affairs have had to commit internally to ensure they comply. McMorran adds lenders CONSUMER PROTECTION ISSUES repossession, bankruptcy or other Providing the right cover for operating responsibly will The FSF says credit-related enforcement action, so the FSF the right person is important, continue to do so and will do insurance (CRI) is vital to supports ensuring these products but it is unclear what’s expected what they have to. responsible lending by offering are easy to sell and buy. of lenders to ensure borrowers “[But] it should be remembered borrowers loan protection. However, one paragraph of provide enough information on the more responsible lenders are Consumer credit insurance the draft code states lenders hazardous pursuits that may void forced to change processes, the (CCI) and repayment waivers should inquire and consider if policies. higher is the cost passed onto the allow them to avoid defaulting – premiums – including interest With regard to borrowers consumer through interest rates through illness, for example. when financed through loans – being informed of key exclusions, or fees.” This has implications for are excessive compared to what the FSF says this should apply to has been advanced. CRI only and not asset insurance McMorran stresses the code because they are so different. applies to two products – CCI and Dealer Information Notice asset insurance. ASSESSING BORROWERS’ NEEDS Dealer Information Notice Loan terms affect premiums The FSF is calling on the MTA MEMBERSHIP INFORMATION paid for CCI and waivers in that government to provide more Cost Interests the longer the lending periods, guidance on “complex or the higher premiums are. uncommon” credit products. National Subscription of motor vehicle dealers a priority “It isn’t clear what is meant by If these are solely buy-backs or $700 Excl GST & Branch fee Yes No ‘excessive in comparison to the reverse-equity mortgages, it has Brand Year Capacity amount of the credit advanced no issues. Strong & nationally recognised Since 1917 4000 members or available’, so the code needs If, however, some transactions to provide more clarity in this – such as contracts with options MTA is NZ’s largest dealer representative group: Franchise respect,” she says. of returning cars during the dealers, used dealers, motorcycle dealers, and truck dealers For instance, asset insurance is term of loans – are deemed too Market analysis - regular, Mediation Yes No paid annually. Car insurance can complex, the FSF suggests such accurate and detailed vary depending on the driver’s products shouldn’t need more Advocacy - pushing the causes age, vehicle and claims history. extensive information. HR Advice Yes No  for your industry However, if the loan is settled, The draft code states Benefits - save money with the policy continues until annual consumers will be required to MTA stationery Yes No  key business partners renewal. determine the timeframe for IT Advice Business Range of Need a mentor With regard to giving which credit is sought. Yes No Managers newsletters Yes No borrowers sufficient opportunity The FSF suggests this doesn’t to consider terms, the FSF points make clear if lenders need to Specialist training Business Advice Industry out contracts have 15-day check borrowers’ likely time for No Yes No research Yes  cooling-off periods. keeping vehicles against loan FURTHER INFORMATION ABOUT MTA The FSF supports the idea that terms. Website Events / get Free phone if borrowers are fully employed, It wants clarification if consumers have to be made www.mta.org.nz togethers Yes No they can be offered full and comprehensive CRI or repayment aware of extra costs, such as CONTACT US waiver, whereas a person getting premiums for insurance related Tony Everett 04 381 8827 income by way of a benefit may to credit, payment for extended only be offered term-life cover. warranties or waivers. 

6 | www.autofile.co.nz news

t As total interest costs mount up,” explains McMorran. Steve Owens, are already being disclosed, “Often borrowers under Jacques Gray and McMorran adds borrowers are stress avoid communication Brett Kilburn drive being provided with sufficient with lenders and there’s no other profits forward. information without having choice but repossession. to separate costs for all loan “The lender allowing the components. borrower to voluntarily sell a car is “To do so would be challenging often acceptable to FSF members. from a systems perspective, and “However, it can result in the costly to implement.” lender being put in a loss position due to the vehicle’s value having REASONABLE LENDING FEES decreased below the loan balance The CCCFA’s lender leaving a shortfall once sold. responsibilities require finance “Also, lenders don’t have providers to ensure fees charged control of the proceeds of avoid being “unreasonable”. voluntary sales and cannot ensure The draft code states practices they receive the full benefit of to be followed are subject of the proceeds to apply to loans.” Commerce Commission’s ongoing For this reason, the FSF wants proceedings against MTF and voluntary sales to be at the “provident deliver Sportzone. lender’s discretion. Previously covered in-depth on promises, by Autofile, this case has been VIEW FROM THE BEEHIVE appealed. Once settled, the MBIE The main changes in consumer intends to review this part of the credit laws have come about they tripled lending code. because of the CCCFA, which is the “A lender should, in the primary legislation that regulates meantime, refer to the judgement the industry and sets out finance our F&I profits.” for case law interpreting the providers’ obligations. relevant provisions together The act is being expanded to “After 30 years in the business, we’ve with the commission’s draft include the Credit (Repossession) seen and heard it all before. guidelines,” the document states. Act, which is being repealed. But the FSF submits lenders are The Private Security Personnel So many companies want your business and they awaiting the outcome of this case’s and Private Investigators Act and promise the earth, but once you’ve signed up, they appeal hearing to provide certainty Personal Property Securities Act just don’t come through. “as to how they can set fees since are being amended. Add to this, I hate change. So when we made the the draft guidelines seem no All of the current changes are change to Provident Insurance I expected very little. longer able to be relied on”. being made through the Credit And got more than I dreamed of. McMorran says: “We don’t Contracts and Consumer Finance Provident Insurance really got our F&I flying. believe the draft code provides Amendment Act, which was They’ve made a massive difference, through their any useful guidance on which a passed in June 2014, while the involvement in our business, and contribution of lender can rely on with regard to draft responsible lending code ideas. They’ve helped our F&I department become a setting fees. Lenders are in limbo was released in November. top performer. because of this appeal. “Achieving the right balance Our F&I has pretty much tripled in the past 12 “The FSF looks forward to the between consumer protection months, and I give Provident Insurance all the credit. outcome of the case, and hopes it and industry flexibility is They actually deliver what they promise. All sales will provide precedent and certainty difficult,” says Paul Goldsmith, people say they will do things. But Provident go the industry is looking for.” Minister of Commerce and above and beyond the call of duty.” Consumer Affairs. TAKING REPOSSESSION ACTION “Most lenders already act – BRETT KILBURN, Kilburn Cars, Manukau. The FSF has taken umbrage with responsibly when lending lenders having to consider less money. But a percentage intrusive means of enforcing engages in irresponsible or Introduce the Provident Profit contracts before starting predatory practices that may put Factor into your business, repossession. customers in difficult situations. “While this is what responsible The act and code will look to talk to Steve Owens or visit lenders do, sometimes their curb them.” www.providentinsurance.co.nz actions need to be pragmatic and To find out more, visit www. timely as failed alternatives can consumeraffairs.govt.nz/ result in the borrower’s situation legislation-policy and click on MotorCover is marketed exclusively by Provident Insurance Authorised Dealers. worsening as interest and costs “credit review”.

www.autofile.co.nz | 7 news

[continued from page 1] Sound engineering design crucial

“When a modification doesn’t and materials are being considered commissioned an independent broken, but UDM and the LVV meet standards, the system – that discussion with the LVVTA engineering review in June 2014 to certifier involved didn’t follow the through its technical committees should take place. determine if the vehicles could be correct process. and network of specialists – enables Baggott stresses: “They must be assessed as fit for purpose. “These vehicles didn’t satisfy alternative methods of compliance supported by sound engineering Carried out in conjunction with standards, so our exemption by reviewing documented evidence design and evidence of safety UDM, it determined this would process covered safety with supporting material data and performance.” only be the case after structural requirements and methods of test results.” Before certifications for the issues were addressed. alternative compliance.” Exemptions from the LVV standards have to be applied for and the current owners of the two remaining Yetis have yet to do this. “The LVV system and its LVV standards “But remedial work has been have been set up to guide people done on both, so we will be able to consider exemptions when their through the modification process.” owners apply. It also means they – Ian Baggott, of the NZTA cannot be on-sold to third parties unaware of the situation.” eight Yetis were revoked, the NZTA The NZTA says the report If UDM or Rod Milner Motors, The NZTA is pleased the LVVTA’s and LVVTA worked with UDM to outlined one matter as being which was appointed sales, auditing regime identified incorrect encourage it to address issues that the bonded joints between marketing and distributor for decisions made by the certifier gave rise to safety and compliance new aluminium floors and the UDM’s Skoda Yeti for New Zealand about the Yetis early in the process. concerns. vehicles’ existing structures. It in November, want to import It advises the modification To try to provide certainty concluded extra fasteners had to similar vehicles in the future, sector when innovative methods for their owners, the agency be fitted. “successful testing in France could “In addition, the floors in four be used as evidence of alternative of the eight vehicles had to be compliance or they can follow the replaced because of insufficient current system as it stands”. strength of the material used,” explains Baggott, while protective INCORRECT CERTIFICATION structures had to be fitted to the The LVVTA published an updated fuel tanks to prevent damage due position statement on December 22, to their closeness to the ground. with chief executive officer Tony Other design issues needed Johnson confirming it identified resolving before the six exemptions problems in June 2013 with the Yetis. were approved with several “We inspected the eight vehicles, conditions, one of which is a and established engineering and customised inspection regime to mechanical faults,” he says. address ongoing durability concerns. “Because unproven materials This means that at three, six, and methods had been 12, 18 and 24-month intervals, the used, the LVVTA requested NZTA will reinspect them at no cost. material information and test “Since June, UDM has been documentation to support them. waiting to get the results of a new “The impact on owners and Trans Future 7 Voyage 76 design tested in Europe,” adds users of the vehicles wasn’t taken osaka 10 Jan, Nagoya 13 Jan, Kawasaki 17 Jan Baggott. “Details of a successful pass lightly and, to ensure our initial Auckland 4 Feb, lyttelton 6 Feb, wellington 8 Feb, Nelson 9 Feb of these tests will allow the agency concerns were well-founded, we to review the exemptions issued. involved more than 30 industry Fujitrans World Voyage 173 “The European testing was due experts and specialists.” moji 2 Feb, Nagoya 4 Feb, Yokohama 5 Feb to be completed by June 2014 but, During the second half of 2013, Auckland 17 Feb as of December, this still hadn’t Johnson says UDM was unable to been provided. rectify them to acceptable standards, Trans Future 5 Voyage 80 “Once this report is received, and was unable to provide evidence the NZTA will review its decision to to support the use of materials and osaka 26 Jan, Nagoya 27 Jan, Kawasaki 31 Jan issue these exemptions – as it will construction methods. Auckland 19 Feb, lyttelton 21 Feb, wellington 23 Feb, Nelson 24 Feb be the base if concerns are raised The NZTA also investigated the through ongoing inspections. vehicles and developed the same “The LVV system as it was wasn’t concerns. 

8 | www.autofile.co.nz news

t He says the review commissioned standards but improved based by the agency last year identified on NZTA information. structural issues that had to be fixed. In addition to those already RECAPPING BACK STORY mentioned, the LVVTA says they In March last year, Autofile Online included structurally reinforcing reported the NZTA was confident the front floor to ensure that in it could bring the eight modified the event of a crash the seats and Skoda Yetis into compliance seatbelt anchorages wouldn’t again after revoking their WOFs in become detached. December 2013. The rear of the floor on some Yetis Celia Patrick said the agency, while had to be reinforced and the rear sympathetic, had a responsibility to suspension was redesigned to get prevent potentially unsafe vehicles its geometry within an acceptable from being on the road. tolerance of the manufacturer’s She added a solution had been specifications, while load-testing was One of the Skoda Yetis put to UDM to consider and the needed on other aspects. being inspected; inset, Tony NZTA was confident it could bring Johnson, of the Low Volume Johnson adds: “As of late Vehicle Technical Association the vehicles into compliance. November 2014, some re-engineering Tony Johnson, of the LVVTA, work has been undertaken by The LVVTA has introduced in them. They work well and will posted a comment online at UDM relating to the main points to new safeguards into its processes continue to do so with interest in www.autofile.co.nz in respects of reduce the concerns of the NZTA.” and systems to identify serious them being phenomenal, so we that article. He is pleased remaining faults incorrect decisions made by need harmony in getting Yetis to “The LVVTA has steered away and durability concerns will be certifiers “at vehicle number one, clients who want them.” from making statements over the dealt with by monitoring each rather than with the fourth vehicle Milner is trying to get ACC past eight months or so,” he said. vehicle so any deterioration of as happened in this case”. to look at them openly, while “However, we are now at a point modified areas can be identified. he says new vehicles are being where circumstances have forced us “The LVV system has a smooth VIEWS OF COMPANIES produced to best engineering to withdraw from discussions.” and simple path for vehicles Roger Phillips, director of UDM, modified in ways that employ which is based in Waiuku, south of conventional and time-proven Auckland, told Autofile he is unable materials and construction to go into specifics. methods,” he says. “I have given the NZTA an “It also has processes to cater for undertaking that I would make no new products and ideas, provided public statements on the issue until the modifier or constructor the current LVVTA situation has provides supporting evidence. been reviewed by the NZTA, which From JApAn to This would include specifications indicated it would be calling for and test results to show they are submissions from interested parties ‘yArd reAdy’ appropriate, safe and durable. in the new year,” he says. “The LVVTA and NZTA have “If the NZTA is unable to provide in new ZeAlAnd worked through this complex issue a satisfactory certification solution - or anything in between during the past year-and-a-half. following that review, then I will be “The NZTA has expressed its prepared to make a statement on appreciation to the LVVTA for the issue at that time.” AutoterminAl AutoterminAl in its form-set review process – a Rod Milner Motors in Auckland services services in JApAn new ZeAlAnd desktop auditing regime that forms was appointed sales, marketing through part of the certification plate- and distributor for UDM’s Skoda < Purchasing > 257 workshops issuing process, which identified Yetis in November 2014. < Auction services > < Inspection services > < Full compliance > problems early. Milner says: “The vehicles have < Repair certification > “The certifier who incorrectly been tested in France, but that < Full shipping services > (as required) < Mechanical servicing > certified the vehicles has worked information isn’t freely given out in < Panel and paint > co-operatively with the LVVTA and much the same way Toyota doesn’t < Grooming > NZTA, and has tried to be a part of hand over its test results, except to the solution.” say they have been homologated. The NZTA suspended the “It’s important these vehicles certifier’s authority for six months, come to the market because disabled and he will undergo LVVTA people want them. These Yetis fit into training and mentoring before his people’s garages, under car ports and certification authority is reinstated in spaces at shopping malls. 257 WORKSHOP www.autoterminal.com  in March. “We have made a big investment

www.autofile.co.nz | 9 news Sights set on compliance market

ehicle Inspection NZ business strategically.” it was good to “We are also looking at the (VINZ) is aiming to Part of his get this sorted possibility of opening a new facility in increase its market share, plan is to be more out at the start one of the South Island’s major cities.” Vlooking at relocating an existing innovative in of 2015 “because Shaw’s appointment took effect testing facility and the opportunity the COF B space, customers and on January 5. He previously held of opening a new one – along with such as by having staff have been senior management positions in the various satellite sites. mobile inspections, asking questions government sector before becoming Gordon Shaw, who was and building about what’s an independent consultant. appointed as the company’s relationships with happening”. He also completed consulting permanent chief executive officer key compliance He adds: “I assignments in the regulatory last month, says: “We have got partners and took on this role inspection sector and used to entry certification and certificate creating added on an interim be a senior manager with Land of fitness [COF] business knocking value for customers. basis on August 1 Transport Safety Authority, which is at our door, and we’re aiming to “We have also Gordon Shaw when the former now the NZTA. grow in compliance because that’s been looking at new product CEO left for personal reasons, so Damon Jackson and Euan where VINZ’s history is in. offerings for some time and it’s great to get it permanently Philpot, directors of VINZ, say: “We are getting good gains in recently committed to having because there are some matters to “We are looking forward to the COF B market and are looking a dedicated IT manager work attend to. continuing to work closely for more customers in that area, through some back-end issues,” “These include looking at with Gordon and his senior along with COF A with the likes of Shaw told Autofile. moving the testing station in Te leadership team as the business taxi operators. “This may result in us being Rapa, Hamilton. It may be relocated enters a significant growth and “As chief executive, I will be able to offer customers mechanical about 2.5km away closer to some development phase in 2015.” focusing on profitability, returns breakdown insurance, for example.” customers with a purpose-built for shareholders and growing the On his appointment, he says facility created. Massive year for used imports – page 28 Finance firms charged he Commerce Commission close attention to conduct and has started criminal won’t hesitate to act if we believe proceedings against two they are misleading debtors.” Tcompanies claiming they have The directors of Budget Loans, breached the Fair Trading Act (FTA). which provides motor vehicle, JAPAN Budget Loans and Evolution personal, business and home loans,

AUCKLAND Finance have been charged with and Evolution Finance are Allan to misleading debtors, including by and Wayne Hawkins. KAWASAKI OSAKA NAGOYA repossessing or threatening to They bought old loan books

WELLINGTON NELSON repossess property without having from failed firms – including the right to do so, and adding National Finance, Western Bay LYTTELTON interest and costs to loan balances Finance and Equality Finance – NEW ZEALAND after selling repossessed property. with most originating between It also alleges customers were 2001 and 2006. told they had to make payments In July 2010, Budget Loans service at higher rates than set by a court, admitted to 34 FTA breaches by to DOOR and telling them they had a shorter Full RPORT charging interest and fees after it Vessels arriving every two weeks time to remedy defaults before had repossessed and sold items RServicing Auckland, Wellington, Lyttelton goods were repossessed than the of security on National Finance & Nelson with ‘Direct Port Calls’ legislation permits. loans. It made repayments and Mary-Anne Borrowdale, general was fined $30,750. CALL ME NOW! counsel for competition, says it is The commission started its Gerry Claudatos concerning Budget Loans is again current investigation into Budget Mob: 0274 400 734 facing action after admitting to FTA Loans and Evolution Finance in 2012. Ph: 09 373 5881 Fx: 09 303 0072 charges about five years ago, as It issued stop-now letters in Email: [email protected] first reported by Autofile Online. November 2013 with regard to www.dolphinshipping.co.nz She adds: “All finance companies one aspect of conduct while its should be aware we are paying investigation continued.

10 | www.autofile.co.nz www.autofile.co.nz | 11

FOR 4157 Ranger Dealer Thankyou Ad AutoFile 297x210mm vf.indd 1 9/01/2015 5:56 pm news Car sales in Japan plummet he Japan Automobile He believes it’s unclear whether Ike says closing overseas plants three lower-house seats to finish Manufacturers Association the ruling coalition will now pursue and moving production lines back with 291, while the ruling coalition (JAMA) has made fresh calls reforms regarding automotive- to Japan is unrealistic, but output was returned thanks to a two- forT the government to tackle the related taxes, which will affect sales from those in the country can be thirds majority. country’s economic issues. projections, but “I think this tough ramped up to bolster exports. This will allow it to pass Prime Minister Shinzo Abe situation will continue”. “Japan’s domestic vehicle laws without the upper house’s was re-elected in December’s Ike says that on top of the tax market remains sluggish approval should the coalition lose snap general election he called to increase, the government is trying against a backdrop of stagnant its slimmer majority in upper- endorse his policies. to achieve two per cent inflation consumer confidence,” adds Ike, house elections. It came with sales of cars and other consumer goods nose-diving because of last April’s hike in consumption tax. “The domestic vehicle market remains There was a last-minute surge in registrations of new vehicles sluggish against stagnant consumer before the sales tax was increased by three percentage points to confidence.” – Fumihiko Ike, chairman of JAMA eight per cent, but since July the monthly tallies have plummeted but salaries have failed to keep up. who is also Honda’s chairman. KIWI DOLLAR CLIMBS ON YEN compared to 2013. “I think firms benefiting from “The situation – which The New Zealand dollar rose to a “We thought [sales momentum] the weak yen need to distribute prompted the decision to delay a seven-year high against the yen would come back after the [money to employees] to increase second increase in consumption after the Japanese government summer, but it has not,” says workers’ disposable incomes.” tax [until April 2017] – underscores voted for a stimulus package that Fumihiko Ike, chairman of JAMA. Although the yen has dropped, the need for measures to promote further weakened its currency. a recovery in demand and The kiwi touched 94.05 sustained growth. yen – its highest level since July “With discussions under way on 2007 – before trading at 93.91 in a package of tax revisions for the Wellington at 8am on December 30. 2015 fiscal year [starting on April 1], The yen dropped back after to we request policies to lower the Abe’s government approved UK NZ burden on automobile owners. spending worth 3.5 trillion yen SPECIALISED DOOR TO DOOR “We also advocate reducing to try to boost gross domestic VEHICLE SHIPPING SERVICE corporate tax, as well as expanded product by 0.7 per cent. tax provisions promoting increased The measures came within We can provide: activity in research and development weeks of his re-election gave him to bolster competitiveness and a mandate to push through his UK Inland VAT expedite long-term growth. policies. Currency experts in New Transport returns “Because the automobile Zealand are predicting continued industry is committed to global weakness in the yen. Shipping Marine (weekly departures) Insurance development, we consider it vital to achieve freer trade and investment.” MORE WITH AUTOFILE ONLINE Full Customs Foreign Looking at the wider picture, Despite car sales in Japan & MAF Clearance Currency the ingredients were there for dropping, some companies based Local NZ Vehicle opposition parties to make gains in there are reporting record profits Delivery Compliance the election on December 14. thanks largely to the yen’s decline. The economy sank into recession Toyota, for example, has taken in the third quarter, households are advantage of the weaker currency Contact me today to discuss your requirements: struggling to keep pace with higher by boosting incentives to new Gerry Claudatos inflation and Abe’s government was buyers in overseas markets. P: (09) 303 0075 M: 0274 400 734 losing favour. Nevertheless, the country’s E: [email protected] W: www.mmnz.biz But the democratic party, car industry is set to make more Japan’s biggest in opposition, only vehicles overseas than at home added 11 seats to reach 73 – below during 2015. the 100 needed to have a hope Visit www.autofile.co.nz for of securing a majority at the next more on this story, and sales election in four years’ time. statistics and analysis of Japan’s Abe’s liberal democrats lost new vehicle market.

12 | www.autofile.co.nz Learning basics of social media

s consumers, we all like to Visit www. has a lasting effect about topics. Have back-up get a good deal, but part of socialbakers.com/ – whether it’s status comments and questions to deciding who we part our statistics/facebook/ updates, landing pages or keep the conversation going, dollarsA with is identifying businesses pages/total/new- Facebook adverts. Ensure and incorporating video may we trust and others trust as well. zealand/brands/auto/ the design is memorable help your brand go viral. The Facebook phenomenon to review the figures on and brand-focused.  Run specials and promotions, continues to spearhead marketing New Zealand’s motor 4: Solid content perhaps just for Facebook friends. companies’ strategies, so it’s no vehicle industry. strategy. Focus on It’s fine to promote genuine surprise top-performing automotive As a guide, the DARREN MARMONT building trust through promotions, but avoid saturating businesses in New Zealand have following steps will set Motorcentral the brand, what makes content with sales posts. If excellent exposure on the site. your Facebook strategy you unique and why content is only about specials and Their success is no coincidence in place. people should buy from you. It’s testimonials, low engagement with part of their advantage being 1: Resources. Expectations important to build trust via posts. rates may follow. If the calibre of they tap into an audience of up about the time it will take must The following examples are likes is low, the level of brand trust to 2.4 million Kiwis who have be established. Facebook is free great places to start: built may also be low. Facebook accounts. in concept, but requires someone  Focus on community activity Having a social-media strategy capable and inclined to be or local sponsorship. We Remember the number-one rule allows you to keep in touch with responsible for managing this love feel-good stories, such with Facebook is for content to be potential and existing customers resource. Thirty minutes a day, half as kids’ sports teams, school aimed at building trust through before their next purchases, and at the start and end, is ample. and community projects, and engagement. communicate in a forum that 2: Set objectives. You won’t sausage sizzles and auctions to In that way and when it’s time allows a connection to take place know your return on investment raise funds for worthy causes. to buy, consumers will hopefully between them and dealerships. without having initial objectives Anything related to children remember your brand and give you Their interaction with you is and long-term goals. How many can be a clear winner. a chance to sell them vehicles. “engagement” and, critically, this is friends and likes are you chasing,  Sport and general trivia, games Darren Marmont has a passion for what it all comes down to. and how many leads are you and competitions. Facebook marketing content. For The engagement rate typically looking to generate? What’s your  Get some discussions going help in communicating strategies, email [email protected]. defines your return on investing budget for this? by asking for opinions to get His next article will cover using video time and money with Facebook. 3: Great design. Visual content audience members talking in social media. For example, if you have 1,000 fans and you post something, if 10 of them “like” you, comment or share your post, then you have an engagement rate of one per cent. As a target, successful businesses in this country have engagement rates up to about three per cent. Some are much higher.

This graphic shows how Facebook engagement rates are worked out You can review engagement rates for New Zealand’s motor vehicle industry online at www.socialbakers.com/statistics/facebook

The team at sincerely wish you and your family HAPPY a safe & prosperous 2015!

IF ONE OF YOUR NEW YEAR’S RESOLUTIONS IS TO SELL MORE CARS THIS YEAR CALL US ON 0800 623 687 FOR A FREE NO OBLIGATION CONSULTATION. 2 15 www.motorcentral.co.nz

www.autofile.co.nz | 13 new cars Sports car range to expand aguar believes its all- Jaguar’s new F-TYPE R wheels are approaching the limit of and, below, its all- aluminium F-TYPE sports car wheel-drive system available grip, the centre coupling will set new standards for transfers torque to the front axle to Jdynamics and driver involvement. improve traction. Additions included intelligent In addition to Jaguar’s eight- all-wheel-drive (AWD) and speed Quickshift, the marque six-speed manual transmission has developed a six-speed options, while electric power- transmission for the V6 and RWD assisted steering (EPAS) is standard configuration. across the range. The F-TYPE is its first sports Enhancements broaden the car to use EPAS and because the range from the 250kW coupé and bonnet gains a system’s electric motor provides convertible with supercharged V6 deeper central power optimum torque power only when needed, fuel engines driving the rear wheels bulge. Distinctive vents distribution. consumption and CO₂ emissions through a manual gearbox to are further apart and The AWD system are cut by up to 4g/km. the 404kW F-TYPE R with its forward than on rear-wheel- sends 100 per cent of the Torque vectoring by braking supercharged AWD V8 and eight- drive (RWD) models. engine’s torque to the rear was first developed for the R Coupé speed transmission. The intelligent driveline wheels under normal driving is now available on all models. It Using all four wheels to get dynamics system is conditions. This maintains selectively brakes inside wheels to the V8’s 680Nm to the road helps networked to the powertrain, the F-TYPE’s RWD handling mitigate understeer for ideal lines the R models accelerate from rear differential and characteristics and through bends. 0-100kph in 4.1 seconds and on to centre coupling, while cuts drivetrain loss. The 2016 model year F-TYPE a maximum speed of 300kph. dynamic stability If the system range goes on sale in mid-2015 The aluminium clamshell control provides determines the rear with pricing to be confirmed. Engine moves midship Veloster concept has been its new large sedan underlines created by Hyundai’s high- its position as a “manufacturer of performance team, which premium and distinctively-styled Specialists in Aalso developed the i20 World Rally vehicles”. Championship car in its initial form The AG continues the pre‑shipment inspections that’s raced by Hayden Paddon. interpretation of the marque’s Fluidic The two-seater Midship is fully Sculpture 2.0 design language with in Japan & UK driveable and boasts the marque’s a long nose and line running the  Full border inspections latest performance technologies. length of the wheelbase. Powered by a turbocharged two- The front-wheel-drive flagship  Authorised MPI inspections litre Theta GDI engine generating offers quiet driving comfort 220kW, it has a lightweight while adopting advanced  Authorised NZTA inspections aluminium suspension, high-rigidity convenience features. chassis and mid-engine layout. It was released in Korea in the  Odometer verification The engine is located behind second half of last year with a the occupants and within the decision yet to be made if it will be  Pre-export appraisal wheelbase for ideal weight sold in overseas markets. distribution and handling The Veloster  Vehicle history reports balance. Midship concept The Midship explores possibilities for the Veloster’s chassis and is JEVIC NZ unrelated to any future production model. 09 966 1779 www.jevic.co.nz Meanwhile, Hyundai says

14 | www.autofile.co.nz news Company eyes up more mergers

orchester Pacific is Its focus than on the As has been the case with other predicting net profit remains on a market, so this acquisitions, the auction house will before tax for its financial quality book is a simple and operate independently. Dyear ending March 31 to come in rather than cost-effective way Byrnes says: “Although proud at about $14m. chasing market to do so. There is of the achievements of Dorchester That’s up on previous guidance of share, while no compulsion and its successful turnaround, $11.5m as a result of including four growth strategy to sell. we also recognise the value and months of full-profit contribution includes loan- “It is in the goodwill in the Turners name, from the Turners Group. There book expansion interests of the which has a lot of history and will also be abnormal profits with partners to company and affection attached to it.” of $3.5m-$4m after bringing in achieve more shareholders to As has been the case with Dorchester’s previous 19.85 per control over acquire shares other acquisitions, such as EC cent holding in the auction house origination. from holders Credit and Oxford Finance, at a market value of $3 per share New Zealand Paul Byrnes, chief executive officer of who may not be Turners will continue to be run as – the takeover price – and writing revenues for EC Dorchester Pacific willing holders, a standalone company but share off the deal’s acquisition and Credit have stayed in line with and reissue them to staff, who will some back-office functions. transaction costs. forecasts and ahead of last year. be motivated holders.” The Dorchester brand will The final consideration mix and Australian sales, which make up 50 Dorchester is planning to remain an important banner for capital raise for the buy-out means per cent of its profits, have picked consolidate its interests into a the group with Dorchester Finance the balance sheet has headroom up but growth is “patchy”. single-listed entity that will carry continuing in the motor vehicle for further merger and acquisition “The indications of a the Turners name from February and consumer lending market. activity, report Dorchester’s lower New Zealand dollar 1, with Byrnes saying it makes Visit www.autofile.co.nz for chairman Grant Baker and chief are a welcome forecast”, say no sense to maintain two listed more on the name change and executive officer Paul Byrnes. Baker and Byrnes. “Securities companies. Dorchester’s half-year report. “The company will continue registration has produced extra to remain active in the evaluation sales in both markets, while the of opportunities that could add final earn-out payment for the further growth for the Turners business has been made.” business or Dorchester Group.” There is a deferred settlement In its half-year report to for about half of Levin-based September 30, 2014 – released Oxford Finance’s purchase price to the NZX on December 22 – due by March 31. Vehicle Inspection New Zealand Dorchester announced net profits There were about 5,400 after tax of $5.06m for the six shareholders on Dorchester’s months to November 26 compared register before the takeover with to $1.85m in 2013. more than 2,000 holding less vinzservices This includes an equity- than 4,000 with the total worth Warrant Road User Charges accounted contribution from the about $1m. of Fitness 19.85 per cent of Turners held The company proposes to offer Certificate of Vehicle Appraisal & over the interim period, while the acquiring holdings of less Fitness (light) Change of Ownership the group’s trading result for the than 4,000 shares at $0.25 – the Certificate of period beat forecasts. same price as the capital raising Drivers Licences Fitness (heavy) All operating businesses and price offered to Turners’ – Dorchester Finance, Oxford shareholders. Imported Vehicle Exhaust Emission Finance, DPL Insurance and EC Directors also want to set up Certification Testing Credit – contributed positively, a share plan for its staff, which Registration Vehicle Information with Oxford Finance performing numbers about 550 following the & Relicencing 20 per cent ahead of its buy-out of Turners, with an issue acquisition forecast. price of 25 cents. Transport Service New lending for Dorchester “A significant number of holders Delivery Agent for Finance has been slightly of under 4,000 shares are original below forecast recently with a debenture holders, who were Specialists in Imported Vehicle Certification competitive market for motor- issued shares as part of the 2010 vehicle loans, particularly in capital reconstruction plan,” say 0800 GO VINZ (468 469) Auckland, resulting in more Baker and Byrnes. relaxed criteria for dealers and “They haven’t had an www.vinz.co.nz borrowers. opportunity to cash up, other

www.autofile.co.nz | 15 regional report Business booming down south strong rural sector in holiday,” he told Autofile. “For Southland and a consistent example, a guy who had driven base of returning clients down to go cage-diving in Foveaux meansA car dealers in and around Straight checked out the dealership Invercargill are positive about where and came back with a mate who the industry is heading. bought a vehicle.” Unlike the big centres, the However, the deep-south location city hasn’t seen big surges in net also poses some issues for dealers. migration. “You are challenged ordering Over the past 10 years, the new vehicles for stock,” says Murrell. region’s net migration figure was “Transport costs have increased -10 meaning dealers have had to and it’s hard to swap new stock rely on existing connections with with other dealers because there’s locals as the population remains a big gap between us and the next relatively static. dealer, so you have to be smart “Most of our customers are local with your ordering.” businesses and farmers – provincial and rural towns have to rely on The X Factor Cars dealership; inset, director Grant Williamson EXPANDING ECONOMY the existing market,” explains “I know people talk about dairy strong growth, with Invercargill Southland’s economy is recording Michael Mason, dealer principal of prices, but the actual effect of being the gateway to the lower steady growth with employment, Southern Automobiles. these is not too dramatic.” South Island and Stewart Island. retail transactions and house prices Invercargill’s economy centres “The farming community is Guest nights increased by 6.6 all rising during the September on the rural sector in Southland, replacing its vehicles on a planned per cent in the December quarter quarter. Consumer confidence is which is home to 11 per cent of cycle instead of when they are to come in 16 per cent higher than also up and new car franchises are New Zealand’s dairy cows. exhausted and they continue to a year ago. seeing the benefits. Despite the fluctuating dairy trade no matter what the market is Grant Williamson, director of Mason says the new vehicle prices, dealers there say this doing,” says Mason. X Factor Cars, has benefitted from market has been incredibly has had little effect on farmers’ “The milk price going down in the increasing number of tourists strong this year with Southern purchasing patterns. the latter half of last year didn’t heading south. Automobiles, which holds Richard Murrell, dealer principal seem to have an impact.” “We’re getting more people franchises for Nissan, Honda, of Southland Vehicle Sales, says: Tourism in the region is seeing passing through Invercargill on Mitsubishi, Subaru and Suzuki, 

Michael Mason, dealer principal of Used car sales for Southland - Dec 2013 to Dec 2014 Southern Automobiles Southland vehicle sales - Dec 2013 to Dec 2014

Public to Public to Dealer to Public to Public to Dealer to Total Used New Used New Dealer Public Public Dealer % Public % Public % cars Cars Commercials Commercials Dec ‘13 373 875 472 1,720 21.7% 50.9% 27.4% Dec ‘13 92 79 9 77

Jan ‘14 108 105 4 51 Jan ‘14 281 892 396 1,569 17.9% 56.9% 25.2% Feb ‘14 105 154 4 81 Feb ‘14 313 919 426 1,658 18.9% 55.4% 25.7% Mar ‘14 117 121 4 143 Apr ‘14 108 98 3 83 Mar ‘14 346 910 448 1,704 20.3% 53.4% 26.3% May ‘14 116 118 5 106 Apr ‘14 296 855 405 1,556 19.0% 54.9% 26.0% Jun ‘14 123 118 8 123 May ‘14 366 991 420 1,777 20.6% 55.8% 23.6% Jul ‘14 122 116 8 113 Aug ‘14 112 108 6 110 Jun ‘14 323 875 424 1,622 19.9% 53.9% 26.1% Sept ‘14 126 118 6 92 Jul ‘14 326 990 501 1,817 17.9% 54.5% 27.6% Oct ‘14 125 100 11 90 Nov ‘14 102 91 5 105 Aug ‘14 295 887 424 1,606 18.4% 55.2% 26.4% Dec ‘14 135 83 8 117 Sept ‘14 342 935 434 1,711 20.0% 54.6% 25.4% 12-month total 1,399 1,330 72 1,214

Oct ‘14 296 887 410 1,593 18.6% 55.7% 25.7% NZ sales - past 12 months 129,925 90,615 7,927 36,612 Nov ‘14 243 912 393 1,548 15.7% 58.9% 25.4% % of national sales 1.1% 1.5% 0.9% 3.3% Dec ‘14 325 912 417 1,654 19.6% 55.1% 25.2% Change on Dec 2013 46.7% 5.1% -11.1% 51.9% Annual total 3,752 10,965 5,098 19,815 18.9% 55.3% 25.7%

National YTD average Change on Population New Zealand Southland % Dec 2013 -12.9% 4.2% -11.7% 18.4% 56.4% 25.2% 4,242,051 93,342 2.2

16 | www.autofile.co.nz regional report

t benefitting from the boom times. comes to helping registered dealers. “For us, 2014 was a fantastic “It has been inept in helping year. For example, our Mitsubishi car businesses making a living franchise saw a 40 per cent increase and doing their jobs properly – and the overall market was up by they have got the blinkers on and 30 per cent. their heads buried in the sand,” “The commercial market was up he says. significantly. We sold one passenger “The council has initiatives vehicle for every light commercial. about trying to promote Southland That’s the main growth and it comes businesses, but it’s doing nothing from the farming community.” about unregistered traders.” Murrell agrees the market has A city council bylaw states: been strong, especially in the Steve Dryden, owner of Steve’s Autos, with the Kergozou Trophy he has won for three “No vehicle may be parked on consecutive years at Riverside Speedway. Photo: Fairfax Media commercial segments. any public road displaying any “Our new Isuzu sales were up as soon as the farmers get hit with “It costs nothing to advertise on sign or notice for the purpose of 400 per cent on the year before and milk prices they don’t hire more these pages and, unlike Trade Me, sale, exhibition or demonstration Kia has been constant,” he says. farm workers – it’s a big round circle. the seller is almost untraceable,” or for advertising goods, services “We were a bit behind the eight “You have a good month, then says Dryden. “It seems to be in the or businesses without written ball on used car sales, but overall a bad one. For instance, October too-hard basket for the authorities. permission of the council.” 2014 was a strong year. The SUV was weak, but it was busy leading “A consortium of 16 used car But where most of the vehicles market is about one-third of our sales up to Christmas. dealers has been battling it for 16 are located came under the NZTA’s total and we sell more Sorentos than “Those at the bottom end of the years and no one is interested. authority. anywhere else in the country.” scale just don’t have the money “We buy a car for $2,000 and Joe Area manager for Southland, X Factor Cars’ year was pretty and more people are getting Bloggs can purchase and on-sell it Peter Robinson, says the bylaw is much on par with 2013 with turned down for finance.” with no tax and laws applied. It’s intended to protect safety, while the local economy remaining In October, the gavel at just cash in the pocket for them.” the agency has worked with the consistent, reports Williamson. Invercargill’s only car auctioneer came Williamson says the city council council by putting warning letters “I guess in terms of the local down on the block for the last time. “has been redundant” when it on the cars of repeat offenders. economy, the Tiwai smelter seems to Lisa Withington, co-owner of be secure and while there have been Todds Vehicle Auctions, says it’s significant drops in the dairy pay-out, now a lot harder than it used to prior to that it was very strong. be to sell vehicles by auction, NYK VEHICLE “Sheep and beef prices are up, particularly because of the increase and exchange rates are helping in online sites for sales. EXPRESS SERVICE  considerably.” Richard Murrell adds the closure Williamson says the drop in of the auction house has made it petrol prices is helping drive harder to place older trade-ins. Reliable fortnightly people back into larger vehicles, which suit Southland conditions. UNREGISTERED TRADERS vehicle logistics “I live in Central Otago and will The amount of roadside traders service JAPAN to NZ not drive on continues to the road down increase around there in a small the country PORT TO PORT / vehicle,” he and it’s also DOOR TO DOOR says. “You want a problem in to Auckland, Christchurch, to be able to Invercargill. Wellington, and Nelson pull out and Dryden says pass something many of them in half the time are unregistered Full MPI inspection you would in a Car dealers say a number of unregistered and believes the small car, while traders operate on Invercargill’s Dee Street authorities should service from Kawasaki, the braking and handling are be doing more to stop them. Osaka, and Nagoya much better.” “We know they are doing Steve Dryden, owner of Steve’s more than six vehicles a year. They SUN PHOENIX CO.,LTD. + Marine Insurance available Autos, says customers in the $2,000 replace their cellphone sim cards P C to $6,000 used car market are every few weeks, so they are nearly For eFFIcIent custoMer Focused servIce finding it tough. impossible to track down.” contact “Money has got a lot tighter,” He says these unregistered traders NYK he says. “Auckland and Wellington are also advertising vehicles on some Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 can absorb a lot more, but with a Facebook pages, which are followed email: [email protected] population in Invercargill of 55,000 by thousands of people in Southland.

www.autofile.co.nz | 17 Vehicles wanted New s in brief dealers Buying now Motor vehicle traders call for names to be revealed Law-abiding car dealers want to dissociate themselves from the Citifleet scandal in Dunedin, saying businesses involved in it should be named to prevent suspicion falling on all of them. An investigation by Deloitte’s has identified three traders in the city ® We like cars. were involved in buying and selling council cars supplied by fleet manager Farmer AutovillAge But we love drivers. Brent Bachop in a $1.59 million fraud stretching over a decade. Audi, Volkswagen, Skoda ...... Blair Woolford 021 0367706 Names were blacked out in the report’s public version “to protect Hyundai ...... Heath Kendall 027 8552681 Nissan and any other brand ...... Brett Harris 029 2931232 privacy”, but it has since been revealed two dealers were examined and a Subaru, Chrysler, Jeep, Dodge, Fiat & Alfa ...... Warren Carter 021 863503 third one may have been investigated. In some cases, Deloitte reported money for council-owned cars was paid by dealers to Bachop and some were on-sold to traders. John Marsh, of Cooke Howlison, told Autofile: “My concern was AlwAys buying suspicion has been cast on all Dunedin dealers and it was important the good nZ new vehicles public knew who was implicated in the investigation.” The outcome of a police investigation into matters arising from the report is expected later this year. call guy walker 021 992 048 German marque scoops online poll run by Autofile The BMW M3/M4 has topped a poll voted run Buying: Vans, Utes, Light Trucks. Nationwide. by www.autofile.co.nz. Contact Gareth 021660180 [email protected] www.317.co.nz Ten vehicles made the final of this year’s To advertise here, contact: NZ Car of the Year [email protected] or ph 021 455 775 Award and visitors to Autofile Online could vote for one of them. The M3/4, pictured, secured 20.78 per cent of the votes. The Mazda3, which took out the AA’s title, came second with 14.72 per cent, while Mitsubishi’s Outlander PHEV was third on 13.42 per cent. The other percentage results were Toyota’s Highlander on 11.69, the Range Rover Sport with 9.52, Nissan’s Qashqai on 8.66, Honda’s Jazz with 7.79, the Mercedes-Benz C-Class on 6.49, Jeep’s Cherokee on 3.9 and Nissan’s X-Trail with 3.03. Meanwhile, the Mazda3 took out the people’s choice award in a social- media survey run by the AA, which included all cars launched last year. With 14 per cent, the sedan won with more than double what its closest rival, Honda’s Jazz, polled. The other cars in top 10 were the Holden Trax, Ford EcoSport, Suzuki S-Cross, Outlander PHEV, Ranger Rover Sport, Subaru WRX/STI, Cherokee and Lexus ES. Report into quad bike and farm vehicle safety A Health Quality and Safety Commission report into child mortality from using motorcycles, quad bikes and other farm vehicles has been welcomed by the Motor Industry Association. It confirms many manufacturers’ consistent advice on their use – that six to 16-year-olds should only operate quad bikes and side-by-side vehicles designed for their age, and under-16s must never operate adult- sized quad bikes. The report adds helmets must always be worn, passengers shouldn’t be carried on quad bikes unless designed for that purpose and children should be supervised by adults. Visit www.autofile.co.nz to find out more.

EDITOR’S NOTE: Our popular reports on Motor Vehicle Dispute Tribunals have been omitted from this issue of Autofile due to space. They will return in the next magazine.

18 | www.autofile.co.nz new cars Crossover refined for off-road

for easier roof-rack loading. departure warning and brake-light The three powertrains with recognition of the vehicle in front. Subaru’s lineartronic transmissions X-Mode offers superior off- include the 3.6RS for the first time. road capability on steep hills and The 2015 Subaru Outback There are two 2.5-litre four- rough trails, while fuel-saving cylinder petrol Boxer-engine automatic stop-start is fitted to all ubaru describes its Outback as satellite navigation-equipped models with 129kW and 235Nm. 2.5-litre models. “the original crossover SUV that models feature real-time traffic A single 3.6RS six-cylinder “The Outback led the global has led to dozens of imitations”. updates and rerouting ideas. petrol variant has 191kW and crossover trend in 1995 and this SNow its fifth-generation Other innovations with the 2015 350Nm – the identical torque latest generation is proof it remains symmetrical all-wheel-drive Outback include an active shutter produced by the four-cylinder a class leader,” says Wallis Dumper, (AWD) model will arrive on these grille that aids fuel efficiency by diesel, which has 110kW and will managing director of Subaru of NZ. shores in February with new improving aerodynamics. be available in two models. “It now offers the traditional technology and Boxer engines It also has a more spacious EyeSight driver assist has Legacy wagon driver an SUV-capable with low centres of gravity. cabin and noise insulation is features to help reduce fatigue vehicle with superior dynamics.” The infotainment system designed to produce premium and the chance of collisions, as Pricing for the 2015 Subaru introduces an array of functions comfort. There’s a larger cargo area well as adaptive cruise control, Outback will be announced at the with speech recognition, and along with a rear-door space step pre-collision braking, lane- start of next month. Suspension gets update VEHICLES WANTED ignificant changes to console, and soft-touch door Holden’s Colorado include trims and armrest, while the comfort suspension on centre stack and steering wheel Mercedes Benz theS LTZ truck, a premium interior trims are now black. Volkswagen upgrade across the LTZ range The range benefits from and an acoustic package to cut wind-noise improvements after Nissan powertrain noise across the intensive testing, while there range – all at 2014 prices. are also refinements to hill-start Lexus The new suspension assist and descent control. comprises of a revised spring rate The acoustic package reduces Kia and damper tuning in addition to powertrain airborne noise making a new stiffer front stabiliser for a highway and urban driving quieter. better ride and balance. The model year 2015 Toyota The LTZs also receive heated Colorado Crew Cab and Colorado leather-appointed seats and are 7 maintain their five-star ANCAP Chrysler optional on the Crew Cab. ratings, while the range has Inside there’s an upgraded satin steel grey as a new exterior Jeep black instrument panel, centre colour. Prices start at $39,990. Dodge

The new Colorado Crew Cab and Colorado LTZ 7 We are always looking to purchase late model NZ NEW CARS AND COMMERCIALS PAUL CURIN 0274 333 303 [email protected] miles motor group

www.autofile.co.nz | 19 tech report

Vehicle Inspection Specialists Vehicle Inspection NZ VINZ proudly bring you the IMVIA Technical Report

TALK TO THE TEAM YOU CAN TRUST: 0800 GO VINZ (0800 468 469) / email: [email protected] / www.vinz.co.nz More to safety than vehicle age hat’s safer than a new emissions at about improve our fleet. Why  The manufacturing of a basic car? How about a safer $560m. Also, the would we use age when specification one-litre Citroen car? I ask, because in World Health we have the ability C1 produces six tonnes of myW position as policy analyst at the Organisation to identify the worst CO₂e. The vehicle uses an IMVIA, I hear concerns about our recently stated offenders? estimated 4.6l/100km and ageing fleet. there is now Getting benefits produces 106g of CO₂/km. The justification is decreased sufficient evidence doesn’t even need to be Its manufacturing process safety and efficiency – or, more to reclassify air a matter of removing produces as many emissions as accurately, the inability to take pollution from Kt i WiLKERSON them from the fleet. driving 56,600km. advantage of the increased safety “contributes IMVIA policy analyst For instance, in-service  Making a medium-spec Ford and efficiency of newer vehicles. negatively to health” and adviser emissions testing for Mondeo produces 17 tonnes Safety refers to the ability to to “carcinogenic to humans”. identified gross emitters could of CO₂e. It uses an estimated avoid or mitigate not only the cost mitigate concerns by catching and 9.3l/100km and produces 214g of accidents to people in vehicles, In light of these points, it’s hard fixing engine degradation. of CO₂/km, so the manufacturing but also those outside – such as to deny a safer, cleaner and more Also, vehicles are lasting longer. produces the same emissions as pedestrians. efficient fleet is desirable. Many of today’s cars are designed driving 79,500km. The Ministry of Transport Age is used as a proxy for these to last more than 400,000km with  Manufacturing a top-of-the- estimates that in 2013 vehicle three metrics as statistical evidence routine maintenance. Considering range Land Rover Discovery accidents cost New Zealand about suggests newer vehicles are on those in New Zealand travel an produces 35 tonnes of CO₂e. It $79 million in healthcare, and that average safer and more efficient. average of 14,000km per year, uses an estimated 14.1/100km excludes other social costs. However, what that statistic some should last 26 years. and produces 324g of CO₂/km, Discussion of efficiency often is really saying is slightly more Finally, returning to the topic of and emits as many emissions confuses several different ideas. than 50 per cent of vehicles greenhouse gasses, we rarely take as driving 108,000km. The most accurate definition of manufactured tomorrow will be manufacturing costs into account. efficiency is the amount of work safer than the ones made today What follows are these costs Were we to spread environmental one gets out of the amount of fuel and slightly less than half of them for three vehicles by comparing effects across the expected lives put in, but it’s often used to refer will be worse. carbon-dioxide equivalence (CO₂e) of some of these cars, it would cut to emissions produced – more This means that depending with actual CO₂ emissions. The their reported efficiency. efficiency, fewer emissions. on the improvement rate, there latter’s estimates do not consider While New Zealand doesn’t While the terminology may not be should be some vehicles, which methane, nitrous oxide or ozone, make vehicles, global warming isn’t as accurate, the concerns are real and entered the fleet years ago, that are whereas CO₂e does. a local concern. My point is not to there are real benefits to decreasing safer, more efficient and or greener demonise new vehicles, rather just emissions. This is because: than the average modern one. inform the debate.  Greenhouse gases contribute Since details are lost in If we are concerned about to global warming and the maths, it’s possible how safe, clean and efficient climate change, so decreasing many new vehicles our fleet is, and worried them reduces their impact. are actually better about the effect our fleet With vehicles, this issue is in one area and has on the environment more complicated than we worse in another. and health, there are usually consider. I question many points to consider  Air pollution effects our whether concerning our fleet that are health. The OECD estimates decreasing age at least as relevant as average age. the healthcare cost of New is the best – or If you have any views, please get in The IMVIA says the manufacturing of a basic-spec Zealand’s road-transport particularly useful – way to one-litre Citroen C1 produces six tonnes of CO2e touch via [email protected].

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20 | www.autofile.co.nz f & i focus

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www.autofile.co.nz | 21 N ew Year’s honours NZ labour market report A NUMBER OF people connected to the automotive industry and associated sectors were recognised in the 2015 New Year’s Honours List. It’s no longer good enough business owners wanting to employ Visit www.autofile.co.nz for more on these stories. to base business decisions on someone, but unsure of costs. intuition alone. On the flip side, The government’s tool enables CHRIS MOLLER, chairman of the NZTA since there’s no time for indecisiveness in bosses to estimate fixed and 2009, has been made a Companion of New an increasingly digital and discretionary costs. Zealand Order of Merit (CNZM) for services to data-driven environment. Using data from government business and sport. Greg Doone, PwC’s digital agencies and Trade Me Jobs, the He has been at the forefront of key industries strategy and data specialist, says calculator tailors employment costs since the late 1980s, such as sport, dairy, tourism, people who run companies can no to the type of role required. transport, renewable energy and infrastructure. longer rely on historical behaviour Employers can find out what Moller’s positions have included being CEO of the NZRU and he with consumers expecting they will be paying straight away previously worked in the dairy industry for 15 years. more personalised and digital and get a breakdown of the He also served on NZX Ltd’s board for a number of years. He is the experiences. compulsory costs, such as ACC current chairman of Sky City Entertainment Group and was appointed “Big decisions change strategy levies, KiwiSaver contributions and as chairman of Meridian Energy in 2010. and the long-term course is fringe benefit tax. for businesses and retailers to The tool also flags up the cost JOHN BOYS, a professor at Auckland University, make use of data for competitive of employing someone in the first has been awarded a CNZM for services to business advantage,” he says. year. Different scenarios can be and philanthropy after contributing to science and A global PwC report – called tried out with results emailed or engineering for more than 30 years. Guts & Gigabytes: Capitalising on saved as a file. He is well-regarded internationally for his the art and science in decision- The calculator helped one research into inductive power transfer technology making – states 66 per cent small business owner to question and its commercial impact, including for charging and powering of bosses have changed their assumptions about taking on staff. electric vehicles, computer chips and LCD displays. approaches to making big Like many small business More than 20 years ago, Boys, of Takapuna, discovered a decisions in the past two years as a owners, he thought hiring staff resonant self-tuning power supply and – with colleague Grant Covic result of data or analytics. was more trouble than it was – invented a floor-mounted system for car assembly since adopted But 44 per cent say the quality, worth and used contractors by major marques. accuracy or completeness of data in busy times, preferring to They won the researcher entrepreneur award at the KiwiNet Awards they have isn’t high enough. pay top dollar than having the 2013 for work on inductive power transfer. A video is available to view “New Zealand is behind global responsibility and ongoing costs at Autofile Online. counterparts,” says Doone. “The of being an employer. survey’s findings affirm a balanced But it got to a point where JANINE SMITH, a previous chairwoman of Custom approach to using data and working with contractors didn’t Fleet NZ, is now a Member of the New Zealand analytics for business-defining give the business any continuity. Order of Merit (MNZM) for services to corporate decisions.” He wanted to grow it and the only governance. As for the rest of this year, 41 thing stopping him was a mental Currently chair of AsureQuality NZ, she is also per cent of business owners are block about hiring permanent staff. principal of The Boardroom Practice. Smith, of “fully prepared” and 54 per cent After running the numbers Epsom, Auckland, has mentored and trained women in corporate “somewhat prepared” to make the through the tool, he found if he governance over the past decade. most important decision they will employed an experienced part- ever need to. timer it would cost $46,000 in the SUSIE STALEY, of Dunedin, has received the Thirty-two per cent say this will first year. MNZM for services to governance. She has held a be based on a new opportunity The tool helped him see number of board positions over the past 20 years. they can’t ignore, 44 per cent KiwiSaver costs were less than he She is an ex-chairwoman of Maritime NZ. In expect to make at least one big thought and to be realistic about 2007, she led a delegation that negotiated its decision a month and 56 per cent the cost of finding the right person. election to the International Maritime Organisation. plan to revisit their most important He also estimated the employee decision within three to six months could take on 18 hours of work a BRUCE ANSTEY, who has achieved 10 because of new information. week bringing in $68,000 a year at championship victories at the Isle of Man TT road- Corporate restructuring, standard industry rates. racing circuit, has received the MNZM. collaborating with competitors After salary and set-up costs, The former Wellingtonian battled cancer in and entering a new industry the business would be $22,000 the mid-1990s and continued to race during this or starting a business are the better off in the first year with the time. He has appeared on Motorcycling NZ’s roll of top three goals among retail owner’s time freed up to expand it. honour almost every year since 1999. executives in the year ahead. Visit www.business.govt.nz to Meanwhile, a new employee cost find out more about the employee calculator may be the ticket for small cost calculator.

22 | www.autofile.co.nz by Sarah Harris M eet the motors team Trade Me Motors

ooking around the Trade Me Motors It’s an ever-changing one because no two days What do you like most about the industry? team, it’s fair to say there have been are the same. I have some great clients coming Being able to help dealers maximise their some changes over the past 12 months. from many varied walks of life all with their own online exposure. LIn fact, we have grown exponentially. interesting and often colourful stories of how What do you like most about your job? Having sadly said goodbye to some and they came to be in this industry. Working in an industry I’m passionate about. eagerly welcoming a substantial number of What do you like most about your job? new employees, we’ve grown from a team The feeling of being an important part of my of 12 to 36. clients’ businesses and being able to confidently Emmy Swift Transparency is natural at Trade Me HQ impart great advice on looking their best online. sales co-ordinator and we want to ensure customers receive an Where are you from? experience in-line with this. Devon in the UK. So given all of the changes, we think Anneka Stevenson How long have you worked at it’s high time to introduce our sales team Business development Trade Me? Nine months. through some questions and answers. manager What is your dream car? Porsche 911 Carrera Where are you from? Turbo in silver. Auckland. What do you like most about your job? How long have you worked at Trade Me? It’s very busy and fast-paced, and I’m working Angela Humble Seven-and-a-half years. with a great team. Auckland account What is your dream car? The DeLorean, so I can manager travel in time. Where are you from? What do you like most about your job? Travelling Bmen Oxna Auckland. around our beautiful country meeting all my dealer support specialist How long have you worked at Trade Me? wonderful customers and the awesome team I Where are you from? Levin. Three years. work with. How long have you worked at What’s your dream car? I don’t have just one. Trade Me? Two months. I prefer old classics and would love a 1969 What is your dream car? I would love to own Mustang 429 Boss, but I’d also love a 1969 Chevy Norman Samuels one of the original Group B Rally Cars. Chevelle SS. If I had endless money, I’d probably Upper North Island What do you like most about the industry? buy a Bugatti Veyron just because I could. account manager The constant change and innovation. What do you like most about the industry? Where are you from? Matauri What do you like most about your job? Working I love watching the trends in the market. Bay in the sunny Far North. with a dedicated bunch of people who are always What do you like most about your job? How long have you worked at Trade Me? looking to improve things. Being out and about. Four years starting at AutoBase. What is your dream car? Chevrolet’s Camaro. What do you like most about the industry? Jodie Buckland Dverna Arona Working with a variety of different people. dealer support specialist South Island account What do you like most about your job? Getting Where are you from? manager out and working with dealers to get better results. Paremata, Wellington. Where are you from? I’m a How long have you worked at born-and-bred Aucklander Trade Me? Five weeks. now residing in beautiful North Canterbury. Andrew Wills What is your dream car? Nissan’s Skyline How long have you worked at Trade Me? L oWER North Island GT-R Godzilla. I started with AutoBase in November 2009, so account manager What do you like most about the industry? I’ve just passed my fifth anniversary. Where are you from? Seeing what cars and bikes are on the market. What is your dream car? It’s a close-fought Auckland. What do you like most about your job? I love battle between the Lamborghini Sesto How long have you worked at Trade Me? talking to clients and solving their inquiries. It’s Elemento and Citroen Survolt. Two years. really rewarding ensuring everything is running What do you like most about the industry? What is your dream car? The Ferrari FXXK. smoothly and chatting with happy clients.

Most popular car Most popular car Most popular body Most popular makes of An AJS 7R 4V McIntyre Special has been makes searched* models searched* styles searched* motorbike searched* 1 listed for $42,000. The 350cc motorbike 1 Toyota 1 Hilux 1 RV/SUV Honda is the only known one of its kind in New 2 Nissan 2 Falcon 2 Ute 2 Harley-Davidson 3 Zealand, apart from one with a G50 3 Ford 3 Corolla 3 Sedan Suzuki Matchless motor. It was built about 10 december 4 BMW 4 Commodore 4 Station wagon 4 Yamaha 5 years ago by Lindsay Urquhart, who is statistics 5 Mercedes-Benz 5 Golf 5 Hatchback Kawasaki well-known on the racing circuit. *in December on Trade Me Motors

www.autofile.co.nz | 23 h e Whangarei tAuckland Hamilton c Thames Taurangad Rotorua Gisborne Napier Newo Plymouth Wanganuin Palmerston North Masterton Wellingtonu Nelson Blenheim Greymouth Whangarei Auckland n uHamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton t

Total New Cars o Total Used Imported Cars

Wellington Nelson Blenheim Greymouth Westport r

r Christchurch Timaru Oamaru Dunedin Invercargill 6,797 Whangarei Auckland Hamilton Thames y 12,448

2013: 6,371  6.7% A Tauranga Rotorua Gisborne Napier New Plymouth 2013: 9,534  30.6% Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandD Hamilton Thames Tauranga Rotorua e 14 Thames ce 0 NEW: 41 2013: 56  26.8% Whangarei mber 2 USED: 2013: 53  % NEW: 143 2013: 122  17.2% 67 26.4 Used: 257 2013: 175  46.9% Tauranga NEW: 2013: 229  % Auckland 220 3.9  NEW: 3,156 2013: 2,981  5.9% USED: 521 2013: 319 63.3% Used: 6,327 2013: 4,767  32.7% Rotorua  Hamilton NEW: 49 2013: 51 3.9% NEW: 340 2013: 323  5.3% USED: 116 2013: 80  45.0% Used: 742 2013: 585  26.8% Gisborne  New Plymouth NEW: 25 2013: 22 13.6%  NEW: 121 2013: 99  22.2% USED: 59 2013: 54 9.3% Used: 198 2013: 162  22.2% Napier Wanganui NEW: 162 2013: 126  28.6% NEW: 93 2013: 37  151.4% USED: 207 2013: 162  27.8% Used: 68 2013: 71  4.2% Masterton Palmerston North NEW: 37 2013: 42  11.9% NEW: 161 2013: 158  1.9% USED: 52 2013: 42  23.8% Used: 275 2013: 247  11.3% Wellington NEW: 487 2013: 465  4.7% Nelson USED: 909 2013: 757  20.1% NEW: 76 2013: 75  1.3% Used: 244 2013: 163  49.7% Blenheim Westport NEW: 45 2013: 55  18.2% NEW: 5 2013: 2  150.0% USED: 53 2013: 37  43.2% Used: 17 2013: 3  466.7% Christchurch Greymouth NEW: 1,350 2013: 1,213  11.3% NEW: 12 2013: 12  0% USED: 1,679 2013: 1,399  20.0% Used: 54 2013: 28  92.9% Timaru NEW: 36 2013: 50  28.0% USED: 125 2013: 73  71.2%

Oamaru NEW: 12 2013: 13  7.7 % USED: 34 2013: 15  126.7%

Dunedin NEW: 143 2013: 161  11.2% USED: 309 2013: 250  23.6%

Invercargill NEW: 83 2013: 79  5.1% USED: 135 2013: 92  46.7%

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Imported Passenger Vehicle Sales by Make - December 2014 Imported Passenger Vehicle Sales by Model - December 2014

Dec '14 2014 Mkt Dec '14 Mkt 2014 2014 Mkt Make Dec '14 Dec '13 +/- % 2014 Total Make Model Dec '14 Dec '13 +/- % Mkt Share share Share Total share

Toyota 2,842 2,261 25.7 22.8% 30,683 23.6% Nissan Tiida 702 546 28.6 5.6% 7,212 5.6%

Nissan 2,476 1,925 28.6 19.9% 25,065 19.3% Suzuki Swift 634 428 48.1 5.1% 6,540 5.0%

Mazda 2,035 1,712 18.9 16.3% 21,098 16.2% Mazda Demio 518 499 3.8 4.2% 5,293 4.1%

Honda 1,147 890 28.9 9.2% 13,346 10.3% Mazda Axela 516 405 27.4 4.1% 5,940 4.6%

Suzuki 734 493 48.9 5.9% 7,826 6.0% Honda Fit 321 291 10.3 2.6% 4,087 3.1%

Subaru 549 372 47.6 4.4% 5,404 4.2% Subaru Legacy 309 212 45.8 2.5% 3,056 2.4%

Mitsubishi 523 358 46.1 4.2% 4,877 3.8% Mazda Atenza 305 254 20.1 2.5% 3,030 2.3%

Bmw 504 282 78.7 4.0% 5,249 4.0% Volkswagen Golf 291 199 46.2 2.3% 2,811 2.2%

Volkswagen 469 327 43.4 3.8% 4,648 3.6% Mazda Mpv 286 236 21.2 2.3% 2,507 1.9%

Audi 256 205 24.9 2.1% 2,554 2.0% Toyota Wish 272 253 7.5 2.2% 3,232 2.5%

Mercedes-Benz 221 146 51.4 1.8% 2,242 1.7% Toyota Vitz 261 227 15.0 2.1% 3,047 2.3%

Ford 147 137 7.3 1.2% 1,484 1.1% Mitsubishi Outlander 255 137 86.1 2.0% 2,032 1.6%

Volvo 90 57 57.9 0.7% 769 0.6% Toyota Estima 238 170 40.0 1.9% 1,940 1.5%

Hyundai 49 18 172.2 0.4% 466 0.4% Honda Odyssey 200 155 29.0 1.6% 2,159 1.7%

Chevrolet 46 62 -25.8 0.4% 585 0.5% Toyota Corolla 197 249 -20.9 1.6% 3,115 2.4%

Mini 46 24 91.7 0.4% 444 0.3% Nissan Dualis 189 84 125.0 1.5% 1,442 1.1%

Jaguar 41 24 70.8 0.3% 423 0.3% Mazda Premacy 185 133 39.1 1.5% 1,794 1.4%

Land Rover 35 30 16.7 0.3% 360 0.3% Nissan Note 150 185 -18.9 1.2% 2,079 1.6%

Lexus 34 29 17.2 0.3% 461 0.4% Nissan Skyline 144 64 125.0 1.2% 1,391 1.1%

Holden 26 28 -7.1 0.2% 298 0.2% Nissan Bluebird 143 132 8.3 1.1% 1,603 1.2%

Peugeot 20 9 122.2 0.2% 172 0.1% Nissan Murano 141 89 58.4 1.1% 1,387 1.1%

Daihatsu 18 18 0.0 0.1% 190 0.1% Honda Accord 139 98 41.8 1.1% 1,526 1.2%

Chrysler 15 5 200.0 0.1% 73 0.1% Honda Cr-v 137 49 179.6 1.1% 1,198 0.9%

Porsche 13 8 62.5 0.1% 141 0.1% Toyota Blade 132 90 46.7 1.1% 1,268 1.0%

Dodge 12 16 -25.0 0.1% 162 0.1% Nissan Wingroad 132 79 67.1 1.1% 982 0.8%

Seat 9 0 900.0 0.1% 9 0.0% Toyota Ist 130 131 -0.8 1.0% 1,722 1.3%

Pontiac 7 3 133.3 0.1% 39 0.0% Nissan Teana 129 127 1.6 1.0% 1,399 1.1%

Alfa Romeo 6 3 100.0 0.0% 50 0.0% Toyota Auris 128 84 52.4 1.0% 1,498 1.2%

Jeep 5 6 -16.7 0.0% 70 0.1% Toyota Avensis 122 109 11.9 1.0% 1,186 0.9%

Kia 5 2 150.0 0.0% 38 0.0% Nissan March 119 192 -38.0 1.0% 1,649 1.3%

Bentley 4 4 0.0 0.0% 29 0.0% Bmw 320i 115 64 79.7 0.9% 1,279 1.0%

Buick 4 1 300.0 0.0% 26 0.0% Nissan Presage 108 134 -19.4 0.9% 1,149 0.9%

Cadillac 4 3 33.3 0.0% 33 0.0% Mitsubishi Colt 103 98 5.1 0.8% 1,336 1.0%

Citroen 4 4 0.0 0.0% 39 0.0% Toyota Mark X 102 64 59.4 0.8% 1,124 0.9%

Ferrari 4 4 0.0 0.0% 17 0.0% Subaru Impreza 97 54 79.6 0.8% 843 0.6%

Others 48 68 -29.4 0.4% 555 0.4% Others 4,498 3,213 40.0 36.1% 46,069 35.5%

Total 12,448 9,534 30.6 100.0% 129,925 100.0% Total 12,448 9,534 30.6 100.0% 129,925 100.0%

Greg Bardsley 0279 363 595 [email protected] Jason Robb PEACE OF MIND. Ramp inspection before shipping 027 413 3222 [email protected] www.heiwa-auto.co.nz

26 | www.autofile.co.nz www.heiwa-auto.co.nz T iida wins top model race he total number of used seem to be buying at the moment “It has been a cost factor with because there were mine closures imported cars sold last year and that doesn’t always means the new ones and when we started and we are starting to recover from outstripped 2013 by 31 per stock is cheaper”. importing they were $64,000. that now. centT after increasing to 129,925 He notes 2014 was a step up on “Mitsubishi has a smaller car, “Things dived a bit in 2013 and units from 98,971. 2013, and he will be looking for a which isn’t practical for too much, now that we have come out that Registrations in December, 20 per increase in sales this year. while the other side of the range our sales figures support growth in which made up the biggest month “That’s what I would like to are Teslas and most people can’t the used vehicle market. of last year, rose by the same see and what we have in stock is afford those.” “We have just got to get onto it. percentage – from 9,534 in 2013 to geared up for that,” says Wilson “It’s The company’s price-points When a town or industry gets hit 12,448 last month. sometimes hard to tell whether for used imported Leafs come in hard, there is a sort of going into a Nissan’s Tiida was the best-selling you have the right stock or if the between $25,000 and $30,000. safety shield. model on 7,212 registrations with market has gone flat.” It has built up relationships over “I think that happened with Suzuki’s Swift and Mazda’s Demio As for the high cross-rate with time in Japan, which it says have our area. A lot of people went into taking out the next two spots. the yen, he notes: “It’s the same for resulted in quality low-mileage a shell and found lower-paying Toyota was top brand on 2,842 everyone and doesn’t necessarily used imports entering our fleet. employment than their mining units. It was followed by Nissan jobs. They have now accepted they and Mazda. Used Imported Passenger Registrations - 2012-2014 have got to go on.” Lloyd Wilson, managing However, the drop in some 13500 director of Lloyd Wilson Motors in 2012 people’s incomes on the West Dunedin, says 2014 was on a par 12500 2013 Coast hasn’t meant Greymouth with the previous year, although 2014 Car Centre has needed to focus on trade started to tail off over the 11500 lower-priced vehicles. past few months. 10500 Campbell says: “We have always “But business hasn’t been bad, been in the $10,000 to $20,000 although November was a bit flat,” 9500 price range.

says Wilson, who is also chairman 8500 “The higher-paying customers of the South Island branch of the of the new car franchises might Imported Motor Vehicle Industry 7500 have moved on, but the $10,000 Association. 6500 to $20,000 range tends to cover a “We had plenty of stock for large percentage of people. December because we were a bit 5500 “We always stock a variety short at the same time in 2013.” Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec because you can’t build a yard His business has opened in Greymouth based on one another yard just across the road, mean vehicles are cheaper, but the Its supply relationships extend to particular type of vehicle. which can take about 30 cars. economy has started to turn.” securing spare parts support from “You have to have everything “We are looking at more volume Ross Baird, of Electric Vehicle overseas in the unlikely event they and a mix is important because in to ensure continuity, and to take Imports, which is based in are unavailable here. any one month what’s selling can some of the peaks and troughs out Alexandra and specialises in Nissan Baird says current new EV price- change.” of stock levels. Leafs, says: “We have seen a cross- tags are often seen as the biggest On the New Zealand dollar’s “If you change something you section of buyers from across all stumbling block to buying new, strength on the yen, Campbell expect a different result, but that’s sectors and fleets are now really but having access to second-hand says: “The Japanese are masters in not always the case. starting to get motivated. stock is facilitating their take-up in being able to adjust their prices “Trade can always be patchy “We are proactive in the whole this country. accordingly, but it does give us through the winter, but the exchange industry, including with the “We started the business about access to the cars we need though.” rate with the yen has bounced back electricity companies, and we are nine months ago and the growth As for the future, he notes over the past few weeks.” not just in it to sell cars.” has exceeded our expectations,” summer is normally a bit better for Wilson had quite a few Baird believes the Leaf is the he says. business. vehicles on their way over most practical electric vehicle Phil Campbell, of Greymouth “I think the market will remain from Japan before Christmas, (EV) available in Japan that can be Car Centre, says: “The year before fairly stable this year and Greymouth “although every man and his dog imported here. last was probably quieter here is a fairly stable sort of market.”

Greg Bardsley 0279 363 595 [email protected] Jason Robb PEACE OF MIND. Ramp inspection before shipping 027 413 3222 [email protected] www.heiwa-auto.co.nz

www.autofile.co.nz | 27 www.heiwa-auto.co.nz M assive year for used imports he number of used Gordon Shaw, chief executive eventually burst with cars coming For now, VINZ is working to passenger vehicles officer of VINZ, says there’s an in from Japan but with the way keep up with the huge volume of imported into New element of gazing into a crystal forward-buying works, I cannot entry certification work coming ZealandT came in at 137,601 last ball about how long current see that happening until after the through from Japan. year – an increase of 28 per cent volumes of used imports from first quarter of 2015.” “We do an important job when on 2013’s total of 107,284 units. Japan can be sustained for. Shaw adds VINZ is seeing it comes to entry certification The amount that crossed the “We are on the crest of a big continued large volumes of because we take our role of border in December was the wave in a perfect storm at the compliance inspections across its ensuring safe cars enter the New second highest of the year at moment with all the conditions network and has more business than Zealand fleet seriously.” 13,131 behind 16,450 in May. being right for importing it can cope with at the moment. Last year also saw 6,283 used Japan accounted for 130,733 vehicles,” he told Autofile. “However, we are always commercial vehicles imported units in 2014 – up by 30 per cent “The New Zealand dollar’s better off when there’s growth into New Zealand, which was an from 100,784 in the previous year. cross-rate with the yen is very although it has caught us off- increase of 1,035 units on 2013’s Australia bumped the UK into favourable and there are good guard a bit,” he says. total of 5,198 – up by 20 per cent. third place with 3,167 used cars shipping prices available because “If you have enough inspectors Used commercial imports from crossing the Tasman, which was a of this as well. all working together, then it’s a Japan made up 5,750 of the total, 59 per cent jump over 1,990 “But I do wonder if some matter of simple economics, but followed by the UK on 183. in 2013. guys may be caught out if the finding and retaining them can The number of light The total from the UK fell by conditions change because those be a challenge. commercial vehicles ended 2014 35 per cent from 2,908 units to involved in finance have been “We always have to be mindful on 5,422, which was an increase 1,885. The US came fourth on forward-paying, so they have got of market conditions when compared to 4,288 units in 2013. 1,346, which was an increase of their prices locked in. starting growth in all of our Heavy commercials dropped from 12 per cent from 1,205 in 2013. “The bubble will have to product ranges.” 910 units to 861. U sed import passenger vehicle arrivals

16000 15000 14000 13000 12000 11000 10000

9000 2014 8000 7000

6000 2010 5000 2013 4000 2011 3000 2012 JAN FEB MAR APR MAY JUN JUL Aug Sept Oct Nov Dec

Used Import Passenger Vehicles By Country Of Export

Country of 2014 2013 2012 Export JAN ’14 Feb ’14 Mar ’14 APr ’14 May ’14 Jun ’14 JuL’14 Aug’14 Sep’14 Oct’14 Nov’14 Dec’14 Dec Share % 2014 TOTAL 2013 TOTAL % share 2012 total % share Australia 208 264 238 263 285 263 236 227 266 268 287 362 2.8% 3,167 1,990 1.9% 1,199 1.6% Great Britain 208 133 142 151 165 125 136 133 181 172 156 183 1.4% 1,885 2,908 2.7% 2,730 3.7% Japan 8,268 8,599 10,695 12,544 15,858 10,044 10,195 8,496 10,578 12,322 10,748 12,386 94.3% 130,733 100,784 93.9% 67,442 92.6% Singapore 15 19 19 29 17 18 22 26 14 30 13 30 0.2% 252 146 0.1% 154 0.2% Usa 81 60 148 104 105 89 141 124 103 115 128 148 1.1% 1,346 1,205 1.1% 976 1.3% Other countries 27 18 12 11 20 19 15 10 24 21 19 22 0.2% 218 251 0.2% 336 0.5% Total 8,807 9,093 11,254 13,102 16,450 10,558 10,745 9,016 11,166 12,928 11,351 13,131 100.0% 137,601 107,284 100.0% 72,837 100.0% CHOiCe 100,000 vehicles per month

www.heiwa-auto.co.nz Greg Bardsley ph: 0279 363 595 email: [email protected] | Jason robb ph: 027 413 3222 email: [email protected]

28 | www.autofile.co.nz Proud to sponsor the SecondHand Car Sales Statistics Festive jump for used car sales

he market for second- Cars in Auckland’s New Lynn, says: just as tough this year, and money has gone up by about 40 per cent hand cars ended on a “There was a bit of an increase in is still an issue for a lot of people out in the past six months.” good note during the last trade last year and clients with there with no increases in wages Matthew Downing, of Miles Tmonth of 2014. bad credit seeming to come out of and the price of housing going up.” Toyota in Christchurch, says: “The There were 17,894 dealer-to- the woodwork. Warwick MacLachlan, strong new vehicle market has public transactions in December, “It seems to be a periodic thing of Holland’s Suzuki Cars in certainly released the price of which was a 6.3 per cent when you come across people Christchurch, says the dealership used vehicles. improvement on December 2013’s who financed themselves a couple started importing vehicles about six “Meanwhile, the residual values total of 16,829. of years ago. months ago and has already seen a of used vehicles have dropped Westport saw the biggest “We are generally able to 40 per cent increase in registrations. making late-model and low- increase in sales, up by 65.2 per finance them as long as they have “We have done this to compete mileage stock less attractive to buy, cent, followed by Oamaru on made the opportunity to make with other guys and boost the level especially on finance offers. 34.3 per cent. The market in New good on their debts.” of stock we have, plus the margins “In our business we continue Plymouth saw the biggest drop of Thompson says bread-and- on new vehicles is not there as to trade a lot of vehicles. We work 17.5 per cent. butter and later used models much,” he says. very hard to remain competitive Public-to-dealer trades also saw around 2008 and 2009 tend to be “I have just stuck to grade four and that has required us to work a strong increase of 9.3 per cent – going well, as well as the cheaper at auction. It’s cheaper to spend harder this year.” from 11,974 in December 2013 to stock, such as the Honda Fit. a little bit more money at auction Trent Ingham, dealer principal 13,084 last month – while private “There is always a low in the and spend both dollars and time of Ingham Mitsubishi in Hamilton, sales increased by 8.3 per cent from market throughout the year and running a car around to the panel says: “Everything is getting 36,992 in December 2013 to 40,044 it is hard to pin exactly when that beaters, rather than getting a more competitive and the used last month. was,” he adds. lower-grade vehicle. vehicle market is very tough at Blain Thompson, of Discount “It looks like it’s still going to be “I would stay our used car stock the moment.”

Secondhand car sales - December 2014

Dealer-To-Public Public-To-Public Public-To-Dealer Dec '14 Dec '13 +/- % MARKET SHARE Dec '14 Dec '13 +/- % Dec '14 Dec '13 +/- % Whangarei 564 549 2.7 3.15 1,844 1,636 12.7 269 240 12.1 Auckland 5,944 5,394 10.2 33.22 13,634 13,017 4.7 4,800 4,216 13.9 Hamilton 1,405 1,321 6.4 7.85 3,228 2,886 11.9 1,141 1,035 10.2 Thames 235 185 27.0 1.31 489 428 14.3 85 90 -5.6 Tauranga 969 812 19.3 5.42 2,003 1,776 12.8 632 533 18.6 Rotorua 285 272 4.8 1.59 695 645 7.8 105 129 -18.6 Gisborne 168 192 -12.5 0.94 367 375 -2.1 104 126 -17.5 Napier 579 566 2.3 3.24 1,374 1,213 13.3 394 381 3.4 New Plymouth 386 468 -17.5 2.16 912 920 -0.9 248 250 -0.8 Wanganui 178 148 20.3 0.99 444 410 8.3 102 127 -19.7 Palmerston North 850 765 11.1 4.75 1,602 1,430 12.0 885 584 51.5 Masterton 180 164 9.8 1.01 385 317 21.5 95 94 1.1 Wellington 1,501 1,449 3.6 8.39 2,773 2,619 5.9 1,176 1,053 11.7 Nelson 358 292 22.6 2.00 957 926 3.3 274 199 37.7 Blenheim 188 202 -6.9 1.05 398 331 20.2 116 143 -18.9 Greymouth 103 88 17.0 0.58 213 198 7.6 49 41 19.5 Westport 38 23 65.2 0.21 82 105 -21.9 1 3 -66.7 Christchurch 2,462 2,471 -0.4 13.76 5,282 4,681 12.8 1,632 1,734 -5.9 Timaru 241 261 -7.7 1.35 543 520 4.4 149 142 4.9 Oamaru 94 70 34.3 0.53 247 198 24.7 24 26 -7.7 Dunedin 749 665 12.6 4.19 1,660 1,486 11.7 478 455 5.1 Invercargill 417 472 -11.7 2.33 912 875 4.2 325 373 -12.9 NZ total 17,894 16,829 6.3 100.00 40,044 36,992 8.3 13,084 11,974 9.3

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New Passenger Vehicle Sales by Make - December 2014 New Passenger Vehicle Sales by Model - December 2014

Dec '14 2014 Mkt Dec '14 Mkt 2014 2014 Mkt Make Dec '14 Dec '13 +/- % 2014 Total Make Model Dec '14 Dec '13 +/- % Mkt Share share Share Total share Toyota 1,888 1,512 24.9 27.8% 16,257 17.9% Toyota Corolla 773 712 8.6 11.4% 6,473 7.1% Holden 790 979 -19.3 11.6% 10,249 11.3% Toyota Rav4 309 222 39.2 4.5% 2,566 2.8% Mazda 528 383 37.9 7.8% 6,675 7.4% Toyota Highlander 270 185 45.9 4.0% 2,002 2.2% Mitsubishi 405 327 23.9 6.0% 5,251 5.8% Toyota Yaris 251 149 68.5 3.7% 2,557 2.8% Hyundai 404 491 -17.7 5.9% 7,591 8.4% Suzuki Swift 229 222 3.2 3.4% 2,692 3.0% Ford 370 621 -40.4 5.4% 6,976 7.7% Holden Commodore 222 364 -39.0 3.3% 3,007 3.3% Suzuki 359 296 21.3 5.3% 4,738 5.2% Holden Captiva 207 226 -8.4 3.0% 2,278 2.5% Nissan 352 303 16.2 5.2% 4,649 5.1% Toyota Camry 195 82 137.8 2.9% 1,043 1.2% Honda 190 136 39.7 2.8% 3,555 3.9% Mazda Cx-5 194 202 -4.0 2.9% 2,374 2.6% Fiat 184 31 493.5 2.7% 640 0.7% Mitsubishi Outlander 180 87 106.9 2.6% 1,661 1.8% Volkswagen 184 242 -24.0 2.7% 3,900 4.3% Fiat Punto 171 0 17,100.0 2.5% 382 0.4% Kia 176 192 -8.3 2.6% 2,826 3.1% Holden Cruze 162 169 -4.1 2.4% 1,875 2.1% Subaru 155 104 49.0 2.3% 1,823 2.0% Mazda Mazda2 156 44 254.5 2.3% 969 1.1% Jeep 122 70 74.3 1.8% 1,325 1.5% Nissan Qashqai 138 94 46.8 2.0% 1,433 1.6% Bmw 119 49 142.9 1.8% 2,132 2.4% Ford Focus 129 173 -25.4 1.9% 1,832 2.0% Audi 96 73 31.5 1.4% 2,075 2.3% Mazda Mazda3 127 72 76.4 1.9% 2,371 2.6% Mercedes-Benz 94 84 11.9 1.4% 1,813 2.0% Honda Jazz 114 42 171.4 1.7% 1,863 2.1% SsangYong 58 88 -34.1 0.9% 988 1.1% Hyundai ix35 107 145 -26.2 1.6% 1,878 2.1% Peugeot 48 92 -47.8 0.7% 1,059 1.2% Nissan X-Trail 99 60 65.0 1.5% 1,403 1.5% Dodge 40 63 -36.5 0.6% 568 0.6% Hyundai i30 86 45 91.1 1.3% 1,382 1.5% Lexus 40 44 -9.1 0.6% 557 0.6% Mitsubishi Asx 83 27 207.4 1.2% 982 1.1% Skoda 38 36 5.6 0.6% 854 0.9% Hyundai Santa Fe 81 88 -8.0 1.2% 1,852 2.0% Mini 28 16 75.0 0.4% 569 0.6% Kia Sportage 74 73 1.4 1.1% 901 1.0% Land Rover 23 17 35.3 0.3% 807 0.9% Holden Barina 69 98 -29.6 1.0% 966 1.1% Chery 15 19 -21.1 0.2% 307 0.3% Mitsubishi Lancer 66 159 -58.5 1.0% 1,526 1.7% Chrysler 15 5 200.0 0.2% 98 0.1% Volkswagen Golf 65 133 -51.1 1.0% 1,694 1.9% Citroen 14 16 -12.5 0.2% 381 0.4% Hyundai i20 62 29 113.8 0.9% 716 0.8% Volvo 14 5 180.0 0.2% 421 0.5% Ford Kuga 62 123 -49.6 0.9% 1,330 1.5% Renault 8 33 -75.8 0.1% 260 0.3% Ford Fiesta 58 35 65.7 0.9% 970 1.1% Mahindra 6 5 20.0 0.1% 58 0.1% Ford Territory 57 95 -40.0 0.8% 1,018 1.1% Alfa Romeo 5 13 -61.5 0.1% 231 0.3% Jeep Grand Cherokee 53 45 17.8 0.8% 767 0.8% Yamaha 5 0 500.0 0.1% 5 0.0% Subaru Legacy 44 26 69.2 0.6% 261 0.3% Jaguar 4 2 100.0 0.1% 122 0.1% Suzuki Sx4 S-Cross 41 0 4,100.0 0.6% 799 0.9% Can-Am 3 3 0.0 0.0% 53 0.1% Dodge Journey 40 63 -36.5 0.6% 566 0.6% Mclaren 3 0 300.0 0.0% 16 0.0% Suzuki Alto 39 17 129.4 0.6% 200 0.2% Porsche 3 7 -57.1 0.0% 289 0.3% Mitsubishi Mirage 39 36 8.3 0.6% 601 0.7% Ferrari 2 1 100.0 0.0% 15 0.0% Ford Ecosport 38 0 3,800.0 0.6% 386 0.4% Great Wall 2 6 -66.7 0.0% 180 0.2% Volkswagen Tiguan 38 52 -26.9 0.6% 759 0.8% Isuzu 2 0 200.0 0.0% 81 0.1% Holden Trax 38 54 -29.6 0.6% 794 0.9% Morgan 2 1 100.0 0.0% 9 0.0% Subaru Outback 37 34 8.8 0.5% 515 0.6% Others 3 6 -50.0 0.0% 229 0.3% Others 1,594 1,889 -15.6 23.5% 30,988 34.2% Total 6,797 6,371 6.7 100.0% 90,632 100.0% Total 6,797 6,371 6.7 100.0% 90,632 100.0%

From the rising sun to the long white cloud

30 | www.autofile.co.nz The history of used car importing to New Zealand new car sales Year ends with record high he total number of new second on 14,033 with Holden significant growth over 2014. best-selling model overall. passenger cars sold in New third on 13,422. “It’s more likely to be a small- “The RAV4 is another iconic Zealand last year went up The Japanese marque also to-modest increase. We are nameplate – it was the vehicle byT 9.9 per cent compared to 2013 – dominated rental car sales by anticipating sales of new vehicles that invented the compact SUV from 82,433 units to 90,632. having the top four models and a 50 to be around 127,000 to 128,000 category and continues to define And the registration of 6,797 per cent market share of the top 15. with continued strong sales in the it,” says Prangnell. “It’s a little bigger units last month meant it was the The Corolla was again the light commercial sector.” and more refined than the first strongest December since 1976. runaway rentals leader with 23 per Toyota notched up its 27th RAV4, but the price has remained The top five passenger models cent and 3,046 registrations. The consecutive year as being the best- affordable.” finished in a similar order as 2013, Yaris was second with seven per selling car brand in New Zealand Elsewhere, the Camry scored a although Holden’s Commodore cent and 933 units, with the RAV4 with five of the 10 top-selling win in the medium car segment, came second on 3,007 to swap third on six per cent and 837 sales. vehicle models. while the Yaris climbed to a close place and push the Suzuki Swift Meanwhile, combined sales of Steve Prangnell, general second in the light-car segment – it into third on 2,692. passenger and commercial vehicles manager of sales, says the Corolla’s was also the ninth highest-selling Toyota’s Corolla predictably took came in at 9,594 units last month success in the overall sales race vehicle in 2014’s market. out top spot with 6,473 registrations for the strongest December on is emphasised by its dominance “Last year was significant. We compared to 5,995 in 2013. The record since 1976. in the small car sector, in which it reached our targets and have RAV4 was fourth on 2,566 with the returned to 20 per cent market Yaris fifth only five behind on 2,557. New Passenger Registrations - 2012-2014 share, which was a goal.” Toyota also took out the 9500 Meanwhile, BMW was New manufacturers’ title for passenger 2012 Zealand’s most popular premium 9000 2013 vehicles with 16,257 registrations – automotive brand for the third 2014 or 18 per cent of the market. 8500 consecutive year with 2,132 new Holden came second on 10,249 8000 registrations in 2014 – 57 ahead and an 11 per cent market share, of Audi. 7500 while Hyundai was third with 7,591 Managing director Nina Englert and eight per cent. Ford sold 6,976 7000 says: “It’s a huge testament to units, while Mazda rounded off the 6500 our range that so many New top five on 6,675. Zealanders bought a BMW during In the luxury passenger market, 6000 the year. BMW topped the ladder for a third 5500 “Our success is above all based year in a row with 2,132 sales. It beat on an attractive product range 5000 Audi’s total of 2,075 by 57, while that has won additional customers, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mercedes-Benz was third on 1,813. aided by the release of new models and variants, and the addition of a LOOKING AT WHOLE MARKET VIEWS ON STATISTICS finished 2014 about 3,500 units five-year warrant.” The total of 127,227 new vehicles David Crawford, chief executive ahead of its nearest competitor – She says high points included registered in 2014 was a record officer of the Motor Industry and with more sales than second, the launch of the i8, 4 Series Gran and was up by 12 per cent on 2013 Association (MIA), describes the third and fourth places combined. Coupé, and revision and expansion when 114,062 units were sold. record-breaking year as “astounding”. “It’s the unsung hero of New of the X range with the BMW X4. The previous best year was 1984 He says: “The new vehicles Zealand motoring,” he says. “Private “This year is shaping up to be when 123,247 were registered, registered in 2014 reflect the buyers and businesses make this equally as busy with barely any while growth in the SUV market strong economy, competitive our most sought-after model. let-up in terms of launch activity, was also record-breaking to claim pricing made possible by the Even used Corollas remain in hot events or partnership activity,” 29 per cent of sales or 37,013 units. relative strength of the New demand with strong resale values.” adds Englert. Toyota topped the overall Zealand dollar and a range of The other passenger vehicle BMW was the first premium market for combined passenger models introduced. stand-out for Toyota was the brand to achieve more than two and commercial vehicles sales in “The outlook for 2015 is for RAV4, which was the most popular thousand sales in 2014, and the 2014 with a 19 per cent share and another strong year, but the small SUV with 2,566 registrations most car of the year title and 24,692 registrations. Ford came MIA does not anticipate in 2014 to make it the sixth category wins in New Zealand.

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he segment for new light New Commercial Sales - 2012-2014 the technology, design and five-star commercials was one of 4250 safety ratings for all models – both 2014’s most exciting with 4000 two and four-wheel-drive [4WD].” 3750 recordsT tumbling and Toyota’s Steve Prangnell, general 3500 32‑year reign of having the 3250 manager of sales at Toyota NZ, country’s best-selling ute ending – 3000 stresses the Hilux retained its as anticipated in the November 21 2750 crown as 2014’s best-selling 4WD. 2500 issue of Autofile. 2250 “The 4WD has gone from A closely fought battle ended 2000 strength to strength,” he says. with 6,342 Rangers sold compared 1750 “There might be newer utes out to 5,778 Hiluxes. 1500 2012 there with more bling, but our 1250 2013 2014 The total of 36,716 commercial 1000 customers want a truck they know vehicles sold last year beat the Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec will deliver whatever they ask while previous record of 30,822 set in holding an incredible resale value.” 2013 by 19 per cent. Ford came second with 7,081 and and there’s a new number one.” Toyota struggled last year by Last month’s 2,797 sales meant 19.3 per cent. Marketing manager Chris lacking some models in the 2WD it was the strongest December Corey Holter, managing director Masterson adds: “It’s a competitive category. since the Motor Industry of Ford NZ, describes the Ranger’s segment and Kiwis are spoilt for “Not being able to offer Association started keeping success as “fantastic”. choice for tough utes. automatic left us fighting with records for this market in 1981. He says: “A lot of attention was “However, the Ranger offers one hand tied behind our back. Toyota topped 2014’s marques on the sales race this year, but we’ve so much more than toughness. However, we will address concerns ladder with a 23 per cent market always said it’s about leaving it up In addition to reliability and by offering more model options for share and 8,454 registrations, while to the customer. They have decided capability, customers appreciate 2WD in our next generation.”

New Commercial Sales by Make - December 2014 New Commercial Sales by Model - December 2014

Dec '14 2014 2014 Dec '14 2014 2014 Make Dec '14 Dec '13 +/- % Make Model Dec '14 Dec '13 +/- % Mkt Share Full Year Mkt share Mkt Share Full Year Mkt share Ford 761 619 22.9 27.2% 7,081 19.3% Ford Ranger 704 573 22.9 25.2% 6,342 17.3% Toyota 584 603 -3.2 20.9% 8,454 23.0% Toyota Hilux 438 458 -4.4 15.7% 5,778 15.7% Holden 228 171 33.3 8.2% 3,206 8.7% Holden Colorado 205 152 34.9 7.3% 2,955 8.0% Nissan 198 133 48.9 7.1% 2,522 6.9% Nissan Navara 198 133 48.9 7.1% 2,522 6.9% Mitsubishi 158 110 43.6 5.6% 2,287 6.2% Mitsubishi Triton 132 73 80.8 4.7% 1,599 4.4% Isuzu 125 108 15.7 4.5% 2,110 5.7% Toyota Hiace 130 124 4.8 4.6% 2,447 6.7% Mercedes-Benz 124 61 103.3 4.4% 783 2.1% Mercedes-Benz Sprinter 103 47 119.1 3.7% 618 1.7% Mazda 101 89 13.5 3.6% 1,463 4.0% Mazda Bt-50 101 89 13.5 3.6% 1,462 4.0% Mitsubishi Fuso 73 51 43.1 2.6% 730 2.0% Isuzu D-Max 78 58 34.5 2.8% 1,232 3.4% Ssangyong 73 35 108.6 2.6% 894 2.4% Ssangyong Actyon Sport 73 35 108.6 2.6% 894 2.4% Volkswagen 68 138 -50.7 2.4% 1,327 3.6% Ford Transit 55 43 27.9 2.0% 688 1.9% Hino 57 36 58.3 2.0% 735 2.0% Volkswagen Amarok 47 41 14.6 1.7% 779 2.1% Foton 49 8 512.5 1.8% 473 1.3% Foton Tunland 41 7 485.7 1.5% 416 1.1% Great Wall 29 64 -54.7 1.0% 739 2.0% Hino 500 30 23 30.4 1.1% 361 1.0% Hyundai 26 25 4.0 0.9% 723 2.0% Mitsubishi Fuso Canter 30 17 76.5 1.1% 245 0.7% Fiat 25 25 0.0 0.9% 401 1.1% Mitsubishi Fuso Fighter 29 11 163.6 1.0% 260 0.7% Ud Trucks 18 18 0.0 0.6% 262 0.7% Mitsubishi L300 26 37 -29.7 0.9% 687 1.9% Freightliner 16 7 128.6 0.6% 162 0.4% Isuzu N Series 25 13 92.3 0.9% 392 1.1% Mahindra 11 8 37.5 0.4% 170 0.5% Great Wall V240 23 49 -53.1 0.8% 567 1.5% Volvo 11 7 57.1 0.4% 268 0.7% Hyundai iLoad 22 25 -12.0 0.8% 702 1.9% Others 62 89 -30.3 2.2% 1,926 5.2% Others 307 397 -22.7 11.0% 5,770 15.7% Total 2,797 2,405 16.3 100.0% 36,716 100.0% Total 2,797 2,405 16.3 100.0% 36,716 100.0% FRANCHISE DEALERS LICENSED TRADERS Expand your network of buyers for trade-in stock – to over 300 registered members Buy quality trade-in stock direct from franchise dealers www.Dealer-Auction.co.nz www.Dealer-Auction.co.nz

32 | www.autofile.co.nz www.Dealer-Auction.co.nz Used vans dominate ladder here were 7,943 used overpriced at the moment. Used Commercial Sales - 2012-2014 commercial vehicles sold in 850 “The hardest to get are double 800 2012 New Zealand during 2014, 2013 cabs, decent utes and Hiace 750 whichT was a 30.3 per cent increase 2014 vans – they are out of this world 700 over 2013’s total. 650 overpriced,” he says. Toyota topped the marques 600 “You can pay $10,000 for a 1990 table with 3,959 units for a market 550 Hilux double-cab ute. The damn 500 share of 49.8 per cent. Nissan was vehicle is 24 years old and it can 450 second with 1,607 and 20.2 per 400 get that sort of price because it’s cent, with Ford third on 319 and 350 tidy, but that’s crazy. four per cent. 300 “There is nothing at the lower 250 The runaway top model was end of the market because all of 200 Toyota’s Hiace, which claimed Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec the cheap stock has gone. Some of 37.1 per cent of the market with it has been exported overseas and 2,944 sales. It was followed by two seen two or three utes on a yard, in cars, you can go to Auckland and cut up in places such as Abu Dhabi.” Nissans – the Caravan on 749 units but we now have 35 on one site.” purchase 30 vehicles in one day. Grant Williamson, of X Factor and Vanette on 432. He says the business sells a lot “But you can’t do that with Cars in Invercargill, says: “While Peter Clough, sales manager of of 10 to 12-seater vans for shearing the utes. You are always hard at it new car sales are strong, some Enterprise Motor Group’s commercial gangs as well as empty trade vans. looking for stock, although it tends customers have had to wait six to centre, says: “I used to deal in cars, “There has been a hole in the to hold its value better than cars.” eight months for a new commercial but we recognised the real need for market that we have recognised,” Stephen Dryden, of Steve’s and others just can’t afford that wait commercial stuff in Gisborne. explains Clough. “All commercial Autos in Invercargill, believes used because the vehicle is nine months “In the past, you might have stock is tough to get. When dealing commercial vehicles are generally old before it’s with them.”

Used Commercial Sales by Make - December 2014 Used Commercial Sales by Model - December 2014

Dec '14 2014 2014 Dec '14 2014 2014 Make Dec '14 Dec '13 +/- % Make Model Dec '14 Dec '13 +/- % Mkt Share Full Year Mkt share Mkt Share Full Year Mkt share Toyota 365 274 33.2 50.6% 3,959 49.8% Toyota Hiace 272 137 98.5 37.7% 2,944 37.1% Nissan 139 115 20.9 19.3% 1,607 20.2% Nissan Caravan 58 47 23.4 8.0% 749 9.4% Ford 38 29 31.0 5.3% 319 4.0% Nissan Vanette 30 19 57.9 4.2% 432 5.4% Isuzu 30 31 -3.2 4.2% 386 4.9% Toyota Dyna 29 11 163.6 4.0% 247 3.1% Mazda 24 23 4.3 3.3% 385 4.8% Toyota Regius 21 14 50.0 2.9% 363 4.6% Fiat 18 10 80.0 2.5% 85 1.1% Mazda Bongo 20 9 122.2 2.8% 313 3.9% Chevrolet 16 12 33.3 2.2% 181 2.3% Fiat Ducato 18 9 100.0 2.5% 81 1.0% Mitsubishi 15 13 15.4 2.1% 236 3.0% Isuzu Elf 17 10 70.0 2.4% 209 2.6% Dodge 10 8 25.0 1.4% 49 0.6% Toyota Hilux 17 8 112.5 2.4% 127 1.6% Hino 9 8 12.5 1.2% 163 2.1% Nissan Navara 14 5 180.0 1.9% 116 1.5% Holden 9 12 -25.0 1.2% 116 1.5% Nissan Nv200 14 0 1,400.0 1.9% 63 0.8% Volkswagen 9 5 80.0 1.2% 54 0.7% Toyota Toyoace 14 5 180.0 1.9% 157 2.0% Iveco 4 3 33.3 0.6% 25 0.3% Dodge Ram 10 8 25.0 1.4% 40 0.5% Land Rover 4 1 300.0 0.6% 20 0.3% Ford Ranger 9 0 900.0 1.2% 88 1.1% Peugeot 4 1 300.0 0.6% 15 0.2% Nissan Atlas 8 11 -27.3 1.1% 137 1.7% Mercedes-Benz 3 2 50.0 0.4% 49 0.6% Ford F150 8 3 166.7 1.1% 41 0.5% Ssangyong 3 0 300.0 0.4% 4 0.1% Ford Transit 8 26 -69.2 1.1% 84 1.1% Volvo 3 2 50.0 0.4% 21 0.3% Mitsubishi Delica 6 4 50.0 0.8% 64 0.8% Daihatsu 2 1 100.0 0.3% 9 0.1% Nissan Patrol 6 1 500.0 0.8% 53 0.7% Gmc 2 0 200.0 0.3% 36 0.5% Mitsubishi Canter 5 4 25.0 0.7% 86 1.1% Others 14 12 16.7 1.9% 224 2.8% Others 137 231 -40.7 19.0% 1,549 19.5% Total 721 562 28.3 100.0% 7,943 100.0% Total 721 562 28.3 100.0% 7,943 100.0% FRANCHISE DEALERS LICENSED TRADERS Expand your network of buyers for trade-in stock – to over 300 registered members Buy quality trade-in stock direct from franchise dealers www.Dealer-Auction.co.nz www.Dealer-Auction.co.nz

www.autofile.co.nz | 33 B umper month for new supply total of 100,571 new cars of the market, new customers are both used and new. Finance sales surprised us, but the fuel economy were imported into New prepared to wait for a month or have also improved and in terms of of the X-Cross is extraordinary.” Zealand in 2014 and 93,412 two down the track if they have a profitability too. Craig Innes, dealer principal of Awere registered to increase this preference for the type of vehicle “Last year was more Ebbett Tauranga, says: “The 2014- segment’s stockpile by 7,906 units. transmission they want.” challenging. The market has been 15 model year Colorado ran out a As for December’s statistics, Downing describes last year as a more contemplative and we don’t little bit, but come November stock there was a 1,346-unit reduction challenging one due to production expect that to change much, but was available. in stock with 8,248 new passenger lines being under pressure because the nice thing is we have a variety “We are stretching the service vehicles crossing the border and global demand is booming. of model changes coming up.” intervals from 10,000km to 9,594 being sold. “It would be fair to say we have Michael Meyer, dealer principal 15,000km, but we’re growing the car The average daily sales rate sold more cars, but it has been more of Autohaus Rotorua, says stock is park as well so it should balance out. – based on a 12-month rolling competitive and there’s certainly holding its value exceptionally well “With Holden we have lots of average – jumped by nine days pressure on the profitability on new and it’s hard to find used Rangers. models that are selling well at the from 247 in November to 256 last business in terms of total vehicle He says: “For the standard Ranger, moment, so we are not relying on month. The number of days’ stock sales,” he told Autofile. all supply constraints have been just one anymore.” at hand dropped by two to 188. “The growth in terms of sales resolved. It’s the speciality vehicles Last month’s national stock “We are finding that stocking generated by the distributors has that people have to wait for.” level of 48,107 units represented levels for new cars are challenging,” been achieved in many cases with Warwick MacLachlan, sales a decrease of 1,366 from 49,473 in says Matthew Downing, general lower profit levels, and strong and manager of Holland’s Suzuki Cars in November, while unsold stock came sales manager of Miles Toyota in aggressive retail campaigns. the Garden City, says: “Stock hasn’t in at 40,201 in December 2013. Christchurch. “During the past three months, been a problem. The X-Cross did have Looking back on 2014, the “Strong marketing campaigns we have seen some of our lowest a three-month waiting list, but we lost biggest month of the year for are clearly putting a lot of pressure transaction prices. very few sales on the back of that. imports of new cars was July on having a lot of stock. “Generally, 2014 was good with “We find that people are with 11,106, while March was the “Based on the competiveness more cars in terms of sales across prepared to wait and that has lowest with 7,174.

Dealer stock of new cars in New Zealand Dysa stock in NZ - new Cars

CAR Sales DAILY SALES Days Variance Stock - 12-MONTH stock 200 Imported Registered AVERAGE at hand Dec ‘13 8,826 6,371 2,455 40,201 226 178 180 Jan ‘14 6,437 8,293 -1,820 38,381 228 168 160 Dec 2013 — Dec 2014 Feb ‘14 6,724 6,572 157 38,538 230 167

Mar ‘14 7,174 7,992 -764 37,774 234 162 140 Apr ‘14 7,994 6,150 2,101 39,875 234 170 120 May ‘14 8,447 6,802 1,696 41,571 236 176 Dec 2012 — Dec 2013

Jun ‘14 7,620 8,517 -569 41,002 238 172 100 Jul ‘14 11,106 7,071 4,035 45,037 239 188 Days of stock Days Aug ‘14 9,649 7,066 2,599 47,636 240 199 80 Sep ‘14 9,602 8,382 1,220 48,856 243 201 60 Oct ‘14 8,297 8,910 -613 48,243 245 197

Nov ‘14 9,273 8,063 1,210 49,453 247 200 40 Dec ‘14 8,248 9,594 -1,346 48,107 256 188 20 C v YTD total 100,571 93,412 7,906 G o ep pr ul eb ay ar un Oct S J F N A DE JAN J AU Dec M Change on Dec 2013 -6.5% 50.6% 19.7% M

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34 | www.autofile.co.nz Good conditions to source stock

total of 13,131 used 7,713 units over the whole year. the people representing the used “The preregistration of new passenger vehicles were Graeme Macdonald, chairman of imports industry, which has such vehicles, and the ducking and imported last month the Imported Motor Vehicle Industry a diverse range of people and diving of the manufacturers, has Acompared to 12,448 being registered. Association’s North Island branch, businesses looking to constantly had a major impact on near-new This was a difference of 683 says 2014 was a healthy year for the change and reinvent themselves.” vehicles,” he says. imports over sales, which increased used imports industry with good Steve McHugh, of Miles Limited “It is having a devastating the stock level to 19,137 units. availability of stock in Japan. in Auckland, says it’s difficult effect on the car market. Buyers This meant the amount of “Previous regulations, such as to compare last year to 2013 are getting excellent prices, but unsold used cars in New Zealand the exhaust emissions rules, have because a major upgrade has margins are dropping.” increased by 683 units compared been working their way through been completed at its premises in The decline in margins isn’t to November. the system with minimal effects,” Greenlane with 2014 being its first being accounted for in finance December was the third highest he told Autofile. full year of operating from it. and insurance “because our month of the year for unregistered “The exchange rate between The company was established demographics mean some stock – behind 20,534 in May and our dollar and the yen has been in 2008 by Bruce Miles and is an reasonably well-off people are 20,332 in June. helping, and being around 92 to integral part of the Miles Motor buying cars”. There were 356 used vehicles 93 is good news for importers. Group – one of New Zealand’s McHugh adds: “I think a huge registered for the first time every Importers and car dealers aren’t largest. It has dealerships across number of cars are on the market day in 2014 and based on that just stockpiling vehicles – they are the country, representing marques for sale from new to used and used continuing stock will last for 54 being sold as well. such as Toyota, Lexus, Mercedes- imports, and only so many people days if no additional cars are “We still have a lot of older Benz, Volkswagen and Nissan are able to buy them. landed from overseas. vehicles in the fleet that are aged among others. “All of the car dealers are For the whole year, 137,638 20 to 22, which means demand will McHugh says Miles Ltd competing for these buyers and used cars crossed the border be ongoing.” concentrates on New Zealand- it’s causing a glut. I haven’t seen compared to 129,925 sales, which Macdonald adds: “I’m new stock from model years this massive number of new cars increased the stock holding by immensely proud to be one of between 2009 and 2014. sold before.”

Dysa stock in NZ - Used Imported Cars Dealer stock of used cars in New Zealand

CAR Sales DAILY SALES Days 180 Variance Stock - 12-MONTH stock Imported Registered AVERAGE at hand 160 Dec ‘13 10,067 9,534 533 11,424 271 42 Jan ‘14 8,807 9,470 (663) 10,761 277 39 140 Feb ‘14 9,093 9,155 (62) 10,699 283 38

120 Mar ‘14 11,254 10,247 1,007 11,706 290 40 Apr ‘14 13,102 9,501 3,601 15,307 296 52 100 May ‘14 16,450 11,223 5,227 20,534 304 68

80 Jun ‘14 10,558 10,760 (202) 20,332 311 66 Jul ‘14 10,745 12,052 (1,307) 19,025 318 60 Days of stock Days 60 Aug ‘14 9,016 11,290 (2,274) 16,751 325 52

Dec 2013 — Dec 2014 Sep ‘14 11,203 11,142 61 16,812 335 51 40 Oct ‘14 12,928 11,105 1823 18,635 290 64

20 Nov ‘14 11,351 11,532 -181 18,454 348 53 Dec 2012 — Dec 2013 Dec ‘14 13,131 12,448 683 19,137 356 54 0 C v G YTD total 137,638 129,925 7,713 o ep pr ul eb ay ar un Oct S J F N A DE JAN J AU Dec M M Change on Dec 2013 30.4% 30.6% 67.5%

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www.autofile.co.nz | 35 GLOBAL VEHICLE LOGISTICS SERIOUS about AUS to NZ

Australia to New Zealand Have you considered it?

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

To find out more about this growing market, contact Danny Knight on 0274 443 433 or 09 412 2765 or email [email protected] www.autohub.co +64 9 411 7425 [email protected]