Tipping Point’ P14 Flagship for New Brand P15 Teeing Off for Charity He Colonial Motor Replaced by Suvs

The trusted voice of the auto industry for more than 25 years Issue 21-2015 www.autofile.co.nz 20 November 2015

In this issue Changes across market p11 Customer delivery tips p12 Rotorua regional report go past ‘tipping point’ p14 Flagship for new brand p15 Teeing off for charity he Colonial Motor replaced by SUVs. Small cars have He says this sector is “in many Company’s chairman remained steady.” ways similar to the heavy-truck p18 Issues with compliance says the shift from new According to the Motor Industry market with individual, high- Thatchbacks and sedans to SUVs Association, sales of new SUVs value sales”. p27 Used cars stockpile up and light commercial vehicles make up this country’s dominant Gibbons highlights BMW as has resulted in considerable segment with a 34 per cent market having “a strong presence backed by change for New Zealand’s share so far this year. superior cars with a loyal following automotive industry. National registrations of picks- among its customers and staff”. Jim Gibbons describes the up and chassis cabs is the second- Jeff Gray made a small, but transformation of the market as now biggest sector with 21 per cent, positive, contribution in its first year having reached a “tipping point”. with small passenger vehicles third to Colonial’s overall performance. “It has long been expected large on 15 per cent. Its facilities in Wellington, We add cars would decline and small cars Colonial bought Jeff Gray BMW Christchurch, Palmerston North grow in volumes, but that hasn’t and Mini in August last year with and Hastings are leased – some value to your happened,” he says. Gibbons describing the luxury only short term – with significant business “Instead, large and medium market as “competitive within itself future upgrades expected, People • Products • Training cars have declined, and have been as the mass market”. especially in the Garden City. [continued on page 4] Action to combat import threats Malcolm Yorston iosecurity measures for to be released early next year. “other significant biosecurity risks”. visits Tokyo used vehicles arriving in The Ministry of Primary It is being proposed that all New Zealand from Japan Industries (MPI) says used imports used vehicles shipped as break- Motor Show areB to be tightened by having them are likely to cause more problems bulk cargo from Japan will have processed offshore. than new vehicles, while issues to be processed through offshore The government is planning arise depending on the location facilities based there and approved to introduce the requirement and conditions they are used and by the MPI. by amending its import health stored in before being exported to The rationale behind the move standard governing vehicles, this country. includes about 95 per cent of used machinery and tyres with a draft Threats it has identified include vehicles being imported here implementation timetable expected the Asian gypsy moth, ants and currently come from Japan. p8 [continued on page 6] SpecialiStS in Pre-shiPment insPections

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Call Steve Owens now on 021 947 752 Industry needs to tackle call-backs ith about a month to sympathy for those running the go, 2015 is likely to be Volkswagen’s Group companies in remembered by many this country, who are dependent peopleW as the year of recalls. on information from their parent The scale of call-backs has been company’s headquarters. Editor Autofile magazine is also available mind-boggling with the Takata In the meantime, owners are Darren Risby online as a readable file or downloadable as [email protected] a PDF. Subscriptions are available at airbag fiasco ever-expanding to take left wondering when vehicles will Autofile Online – www.autofile.co.nz. the total number of cars affected be remedied and marques must 021 137 5430 Back copies are also available on worldwide to more than 40 million. fear how the scandal will affect the website. Advertising The Japanese company was this future business – it is already Copyright: Published twice monthly by Brian McCutcheon 4Media Ltd, PO Box 6222, Dunedin 9059. month fined about NZ$308 million doing in Europe. [email protected] LocaLLy owned shipping speciaLists by regulators in the US for the way Once the head office in 021 455 775 All statements made, although based on information believed to be accurate and it has handled recalls of exploding Germany comes up with a solution, reliable, cannot be guaranteed, and no airbags. The number of people Kiwis will be informed about what Online producer & JOURNALIST liability can be accepted for any errors killed is close to double figures will happen and when. Julia Braybrook or omissions. Reproduction of Autofile [email protected] in print or digital format in whole or part Jacanna offers a professional service with a wealth of knowledge while those injured exceed 100. The group appears to be without written permission, whether by When the recalls for these struggling to speedily get to grips copying or any other means, is strictly Designer systems will end is anyone’s guess, with the situation. It was only late last forbidden. All rights reserved. and expertise in logistics, warehousing and distribution across all Adrian Payne although it’s good to see marques month that Matthias Müller, chairman ISSN 0112-3475 (print) [email protected] ISSN 2350-3181 (online) commodities. With options to move cargo by SEA, AIR or LAND taking action of their own. For of its management board, announced example, Honda and Mazda will no “five key steps to realign” it. through a worldwide network of agents longer use Takata inflators in front His top priority is supporting airbags of new vehicles. customers affected by working The emissions cheating “intensively to develop effective engulfing the Volkswagen Group technical solutions”, which are due happy has mushroomed beyond it to start in January – quite a time WITH YOUR CURRENT installing defeat devices in about lag since September 18 when the 11 million diesel engines. news broke. ARE YOU VEHICLE SUPPLIER It recently revealed data He has also pledged to “drive ? inconsistencies for carbon-dioxide forward the investigation” because emissions for 800,000 more vehicles – “we must learn from it”. Then WHAT YOU GET WITH mainly cars with small diesel engines there are plans to decentralise and one petrol model. That total has the group’s management, which Vehicle Shipping General Freight Vehicle Tracking Shipping Schedule now jumped by about 43,000 units many industry experts describe as with some being petrol-fuelled. cumbersome at best. We are specialists in We have developed Finding out where your TRS and shipping services Meanwhile, US authorities believe The fourth priority is tackling the Reliability transporting and exporting a worldwide network of vehicle is at any one time from Japan to three-litre diesel powertrains in some company‘s “culture and management First choice for NZ dealers Stock Ready all types of Vehicles, Agents who understand of the process, gives you New Zealand. Porsches and Audis may also have behaviour”, while the fifth is for 20 years foR Shipping Commercial trucks, the commitment required the ability to manage the Extensive range of pre-purchased false test results. transforming its strategy until 2025. stock available for shipping NOW vehicles of Special Interest to service our collection and processing A German government agency All of this hardly invokes expeRience and other RORO Heavy demanding market. of documents and payment is extending its probe beyond confidence that it is currently Our buyers are knowledgeable about NZ dealers requirements tRue dealeR Cargo & Machinery. on time. vehicles made by Volkswagen to anywhere close to being well run WholeSale more than 50 models produced and – judging by reports coming out Fixed fee includes all Japan side: choice transport, documents and taxes by 23 marques on suspicion of of Europe – it’s bordering on chaos. 100,000 vehicles per week available fiddling nitrogen-oxide results. Let’s hope the issues are resolved through our auction search engine They include BMW, Fiat Chrysler, StRictly soon, and all car manufacturers and dealeR only Ford, General Motors, Honda, their suppliers work to ensure there peace of Mind Heiwa Auto never sell or export vehicles Hyundai, Jaguar Land Rover, Mazda, are less recalls next year. All vehicles Ramp Inspected to private buyers before departure Load it » Ship it » Track it » Clear it » Deliver it Mitsubishi, Nissan, Peugeot, Renault Darren Risby, editor and Toyota. Visit www.autofile.co.nz Note: There will be one issue of contact: Kei Mikuriya email: [email protected] for a list of the models. Autofile in December and January, It’s not hard to feel some which will be published mid-month www.heiwa-auto.co.nz www.jacanna.co.nz Tel. +64 9 838 4944 www.autofile.co.nz 3 news

[continued from page 1] Major investments by company

Colonial’s new dealership in new service-only facility for South rebuild of the parts and truck continue in business are sorted out. South Auckland, Southern Autos – Auckland Ford and Mazda aimed preparation area. The final stage “It’s expected a public lane Manukau, officially moved into new at people working at and around – the sales, parts showroom will traverse our site despite the premises in mid-September. the airport. and office areas – has just been existence of fully fledged cycle The business had been “Two years ago, we commenced completed.” lanes on the street. Meanwhile, operating for 10 months starting a major rebuild of Southpac Trucks’ In the current financial year, the dealership is operating very from scratch out of portable facilities on Wiri Station Road,” Colonial hopes to enhance the successfully.” t buildings while a purpose-built Gibbons told shareholders at reception building at its Tuam Colonial has sold its Capital facility was constructed. Colonial’s annual general meeting Street property occupied by Team City Motors site in Taranaki “There was no customer base earlier this month. Hutchinson Ford. Street, Wellington. The deal went for brands it sells – Isuzu, Peugeot, and Citroen,” says Gibbons. “Peugeot and Citroen, in “While we respect our history, particular, haven’t had strong profiles in recent years. However, we cannot afford to sit back and they are complementary to the nearby Ford and Mazda brands, ignore the changes around us.” and add incremental sales. – Jim Gibbons, chairman of the Colonial Motor Company “The site has been owned by “This began when we took “Following the Christchurch unconditional on June 30 with the company since the mid-1990s. possession of an adjoining earthquakes, the parts building settlement on September 1. But the buildings didn’t fit in with property and rebuilt a warehouse and most of the showroom were The property has been sold the adjoining Ford and Mazda into a retail truck workshop with demolished,” says Gibbons. with a two-year lease-back to dealership, so it was leased out for eight 25-metre drive-through bays. “The project has been delayed give it time to identify alternative some years.” “That freed up space on the while conflicting demands of locations for the business. Work has also started on a original site, which enabled a planners’ dreams and our desire to The company has occupied  Take ConTrol with Dealer Dashboard  Never be caught out with vehicles in your Trader Network  At a glance view your current trader network vehicles  Tag vehicles for urgent attention  Quickly view graphs of vehicle age and time in stock

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Colonial’s nine-storey building at 89 Courtenay Place was Wellington’s tallest when it opened in 1922 as New Zealand’s first automotive assembly plant

t the Jessie Street sections of the to an upgraded and smaller Colonial uses its assets efficiently “Our focus is existing site for many years going back facility in Courtenay Place, while and its operating companies shareholders. We are also looking to the 1920s assembly days in the sales and administration continue to perform profitably. to grow in a manner that does Courtenay Place. building at Energy City Ford in “The first call on our not risk what we have. “However, while we respect our New Plymouth has just been profitability is to reinvest in the “Finding a good fit to our history, we cannot afford to sit back remodelled. businesses to ensure they have existing businesses is the key. We and ignore the changes around us,” Colonial reports 12 successful long-term futures,” says Gibbons. have to recognise the strengths says Gibbons. months for the past financial year “Next come dividends. and constraints of being a “Taranaki Street is changing with a trading profit after tax of “This is a company that has franchisee.” from car dealerships to much more $16.37 million. long-term shareholders. Many intensive uses of land, such as That was down on the previous span multiple generations and a MORE ABOUT COLONIAL offices and apartments. Dealerships year’s record, but higher than the few go back to the first years of the Visit www.autofile.co.nz for are poor users of space. year before that for the company’s last century when the company more on Jim Gibbons’ speech to “We need a large site and second-best results. was formed out of the previous the company’s shareholders on cannot continue on expensive land. “After four years of significant partnership. November 6. We are looking for alternative sites profit growth, we have levelled “Long-term shareholders get Turn to page 25 of this issue of in the region that are affordable.” off just below the peak,” says their returns from a strong business Autofile magazine for his views on In addition, the company’s Gibbons, who adds the “first and and the dividends that come from how company sales of new vehicles  registered office recently moved most important focus” is to ensure that – not from a gain on sale. have been performing. Fuel-economy issues Jim Gibbons describes concerns to think all cars on the road achieve about fuel-economy figures as anything near the official emissions. “compelling”. “Very few people have their The Colonial Motor Company’s vehicles tested. Not many know Thanks for chairman recognises most Kiwis are what the emissions are from their aware of the issues and recognise own cars. their vehicles fail to match official “There would be lot more statistics for fuel consumption. public awareness if cars were MTAyour Gift Cards are the perfectbusiness! way to show “There are many justified tested for emissions as part of their customers how much you appreciate their criticisms of official fuel-economy warrants of fitness.” business. You choose the card design, how much figures, but at least there’s a known Gibbons says this subject is the card will be worth, and the customer you give it standard,” he says. back in the headlines because of to can use it at any one of over 2,000 MTA service “Official figures for engines’ the scandal at the Volkswagen station and gift card members nationwide. carbon emissions are in most new Group, which has admitted to vehicles’ brochures or on websites, installing device devices in diesel but few people get them tested to engines of about 11 million see if they achieve that. vehicles globally to create false “Nitrogen-oxide figures for an nitrogen-oxide readings. engine are harder to find. Some He describes the company’s brochures say a vehicle is Euro 4, 5 actions as “deliberate” and going “to or 6 compliant, but specific figures the core of the brand’s credibility”. DownloaD our new app now aren’t normally published. “Over the past 20 years or so, “New Zealand’s fleet of cars – new vehicles have had to pass all three million of them – has an increasingly stringent emission average age of 14 years with many tests,” adds Gibbons. To buy an MTA Gift Card and to ﬁnd the lasting in excess of 20 years before “In New Zealand, emissions are MTA members nearest to you go to being scrapped. equated with fuel economy, but it’s “It’s simply a stretch of credibility not the same thing.” www.mta.org.nz

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[continued from page 1] Biosecurity measures ‘make sense’

“The import of used cars from to manage the risk its proposed changes case of business as usual”. Japan continues to be managed as of mobile pests on to the import health He adds: “However, what it a high-risk pathway,” says the MPI. vehicles at the port standard that it is means is importers of used vehicles “It is managed almost when they are coming concentrating on what from Japan will no longer be able completely by offshore MPI- in large numbers and poses the highest to have them inspected on arrival approved systems already, are not containerised. contamination risks for in New Zealand. which has proven to be the most “This proposal will vehicles coming into “Instead, they will all have to successful way to manage the risk. prevent uncleared New Zealand. go through our approved systems “Under these systems, vehicles contaminated used “These are the already in place overseas. are cleaned and inspected vehicles from Japan Asian gypsy month “The changes to the import offshore. A proportion arriving are arriving in New Euan Philpot, of JEVIC NZ from Japan and the health standard from our company’s reinspected by the MPI to verify that Zealand and keep significant brown marmorated stink bug from perspective are reasonably management offshore is effective.” risk offshore. The used import the US, so it is targeting areas it straightforward because the vast Between five and 10 per cent industry’s systems already in place knows creates vulnerabilities. majority of vehicles are inspected of used vehicles from Japan arrive in Japan are tried and tested.” “I have no doubt whatsoever pre-shipment before they leave in New Zealand without going Euan Philpot is the chief executive that these measures will better ports for New Zealand. through systems approved by the of JEVIC NZ, which specialises in pre- protect our borders when it comes “We are obviously supportive of government and are inspected on shipment inspections. to biosecurity risks.” the MPI’s stated ambition to get all of arrival at dedicated transitional He says: “The overseas market Philpot told Autofile the these inspections completed offshore. facilities on or near ports. with significant volumes for New proposals will not lead to great “We have set up a business Many have to be cleaned in this Zealand is obviously Japan at the changes having to be made model that supports this and have country and some have arrived moment, so it makes sense for the in the motor-vehicle industry, been conducting such inspections with high-risk pests on board. MPI to focus on the used-vehicle especially given the high volume since 2001. In addition, we have “Although the pests are found pathway from that country. of cargo already being inspected a good and proven track record during MPI inspections, it is difficult “The MPI has made it clear with in Japan, so “it will be more of a of providing services that the  Action on American imports a fresh approach Any untreated vehicles arriving machinery at their own expense.” from the US may be sent back at the The MPI introduced mandatory to dealer finance shipper’s expense under strict rules treatment requirements in intended to keep New Zealand free December 2014 for all vehicles and of brown marmorated stink bugs. machinery imported from the US, A Ministry for Primary but allowed some treatment of bulk Industries (MPI) directive has imports on vessels before landing or come into force making it while at Auckland’s wharf. compulsory for all bulk-imported “We are taking the vehicles and machinery from there restrictions a step further now to be heat-treated or fumigated that treatment facilities are before being shipped here. fully operational at the main US Biosecurity staff have vehicle export ports in Baltimore previously found increasing and Savannah,” adds Spelman. numbers of the bugs during “We have worked closely with border inspections of vehicles importers on this issue. There is arriving from the US. agreement that sufficient facilities “The rules will minimise the are now in place in the US to risk of stink bugs establishing allow them to comply with MPI in New Zealand well before requirements.” vehicles reach New Zealand,” Brown marmorated stink bugs says Andrew Spelman, MPI can cause serious damage to New border-clearance manager. Zealand’s horticulture industry. “This is about pushing the The MPI has been running an biosecurity risk offshore. We awareness campaign highlighting we’re in this together will be assessing each arriving the dangers they pose. It vessel on a case-by-case basis, encourages suspected sightings to www.MyFinance.co.nz 0800 385 385 but ultimately some could have be reported to its pest and disease to return untreated vehicles and hotline on 0800-809-966.

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t automotive industry requires.” already in place to achieve them. The MPI says vehicles and “The IMVIA would like this machinery are a higher risk than implemented in a measured way other “inanimate cargo”, such as and with the industry, which is shipping containers. what the MPI normally does. This is because their complex “Our concern is about the construction creates more habitats timing and management of this for pests, and makes inspection transfer of work, and the IMVIA has and cleaning harder. made its submission on that basis. A vehicle undergoing an It adds vehicles and machinery “We are not yet confident there inspection by JEVIC usually remain permanently in this are sufficient facilities in place now, country, and “are used well outside so we are looking for a pragmatic being reshipped or even destroyed. vehicle quarantined to prevent the main MPI surveillance networks, approach from the MPI.” Deliberate non-compliance or others from escaping with the MPI which increases the likelihood of The review of the import negligence may lead to increased notified immediately. pests establishing in New Zealand”. health standard also extends intervention or prosecution under The consultation period for David Vinsen, chief executive to used agriculture, forestry the Biosecurity Act. the review of the import health of the Imported Motor Vehicle and horticultural vehicles and To comply, vehicles, machinery standard closed on November 5. Industry Association (IMVIA), machinery in that they will also and tyres must be cleaned and or The MPI will now consider supports the MPI placing have to be cleaned and be free of treated internally and externally, submissions to inform its final issue more emphasis on biosecurity contamination offshore. especially areas not readily and guidance document. compliance by moving to more Used tyres and vehicles parts – accessible to physical inspection. “After we have considered all inspections offshore “as a matter including those to be dismantled – This often means using a device, submissions, we plan to publish a of principle provided there are will not be given border clearance such as a videoscope. provisional standard for 10 days to commercial services available to unless treated as outlined in The standard for general give authorised people a chance to perform the necessary functions”. the MPI’s approved biosecurity transitional facilities for uncleared ask for an independent review,” a He says: “We do not want treatment schedule. risk goods contains specific spokesman told Autofile. the industry to be in a position Vehicles and machinery that fail requirements. “If there’s no review, the standard where the MPI comes down to comply with the standard will not Any live insects found must becomes final after 10 days. We hard and fast with requirements be cleared and directed for further be treated immediately using expect the provisional standard to without capability and capacity action, such as decontamination, a knock-down spray and the be ready by early next year.”

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www.autofile.co.nz 7 tokyo motor show Discovering visions of the future

t was only a 300-metre walk from the Ginza Grand Hotel in Shinbashi to catch the IYurikamome driverless train to Rainbow Bridge to cross over to the Big Sight complex where the 44th t Tokyo Motor Show was being held. Arriving at 8am meant waiting with global media folk who had arrived to see the latest and greatest from the world’s vehicle manufacturers, writes Malcolm Yorston. With typical Japanese punctuality, the barriers came down 30 minutes later for the sea Toyota’s CH-R concept hybrid of journalists and cameramen to flow into the event, which took over two massive halls. The new Prius took pride of place at the first of Toyota’s stands alongside the SIFR, CH-R concept hybrid and FCV Plus concept. Toyota’s Alphard Daihatsu’s disability transporter concept Nissan’s NV200 Hercule Concept Daihatsu’s stand had two specially configured Tantos 1s – – the same as those replacing New including a MV Augusta motorcycle. In the afternoon, the west one for loading wheelchairs from York’s old yellow cabs. Honda’s new NSX, which was hall beckoned. Intelligent the rear, the other with a “welcome Then there was Toyota’s new stunning in red and ready for club transportation systems (ITS) seat” for the front-seat passenger. Hiace Platinum Lounge, which is track days, was joined by the Clarity were on display upstairs with Mitsubishi’s electric vehicles basically the old Hiace high-top fuel-cell vehicle (FCV). vehicle-to-vehicle, vehicle-to- (EVs) and Outlander PHEV were revamped, along with the Alphard It was Back To The Future with infrastructure and vehicle-to-people prominently exhibited along with its convertible and Noah Active Cross the 1960s-looking Cub – an EV – and objects technology (known under-vehicle electrical componentry concepts, which seems to be while Honda’s turbofan engine is as V2X), interfacing computers, and the pure-electric i-MiEV. aimed at surfers. being installed into executive jets smartphones with in-car systems On the other side of the east Mercedes-Benz had its Maybach built by its aerospace division. This and others that New Zealand is hall was Nissan’s new NV200 taxi S600 limousine next to its AMG contrasted with the small S660 likely to see sooner rather than later. that it wants to introduce in Japan GT, F1 racing car and other AMGs, looking sexy in canary yellow. They included Smart-glass, which will enable head-up displays to become commonplace. The smart-mobility area had Toyota’s i-Road and COMS, Honda’s MC-B, and Nissan’s mobility concept and ZeiD-C1. Toyota’s hydrogen FCV Mirai was shown next to a refuelling station. Upstairs was also the Style-D MV Agusta F3 800 AMG Concept Honda’s electric Cub The Honda MC-B Piana. This little two-seater, front- 

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8.autofile www.co.nz tokyo motor show

The Honda NSX Mazda’s RX-Vision t door entry EV reminds me of the old e-NV200 – the electric-powered 911 Carrera 4S and Macan GTS. now also come ESC-equipped. BMW Isetta except it has a wheel delivery van that uses the Leaf’s EV Next up was Audi’s Q7 e-tron As I predicted after 2013’s on each corner as opposed to the technology – while the Wagon-G quattro PHEV, which was smart and event, many more hybrids are Isetta’s narrow-track rear wheels. Its is configured as a seven-seater ready for action, its new TT coupe being produced by a larger power is delivered by a lithium-ion and, I would imagine, should prove cabriolet, TTS in canary yellow and number of manufacturers. battery for a top speed of 75kph reasonably popular with those R8 V10 Plus in a stunning blue. A marked increase in PHEVs and and range of about 120km. looking for an electric people-mover. Fiat-Chrysler Automobiles pure EVs will become available for Mazda’s head-turning RX-Vision The new Leaf boasts a larger exhibited its new Jeep Renegade in consumers, while changes in New is its replacement for the RX-8 and solar panel. Not only is Nissan canary yellow, the Alfa Romeo Spider Zealand will be supply-driven – as is powered by the new SkyActiv producing EVs, it is also making – also in yellow – and the Giulietta in has been the shift from manual engine. Also displayed downstairs hybrids, such as its all-new X-Trail. more traditional red livery. transmissions to automatics over was also a CX-3 fitted with a Then there was the GT-R My thoughts after attending Tokyo the past 20 years. SkyActiv 1-5-litre diesel unit and a Nismo – its good looks should Motor Show are that we’re going to Hydrogen FCVs are in their refurbished 1970s Cosmo Sport. rock a few socks – the 2020 Gran see greater connectivity between infancy, but I’m sure we will see The Nissan stand took virtually Turismo concept, which looked vehicles and infrastructure with the a rise in their availability over the half the bottom end of the west a bit like a spaceship, the Skyline implementation of more ITS solutions. coming years. wing, and included the IDS zero- hybrid and Fuga. Electronic stability control (ESC) emissions EV and Gripz concept, Porsche showed off its new GT3 has become standard across cars Malcolm Yorston is technical services manager of the IMVIA. Visit www. which is a small SUV crossover. Cup race car, which shared the with the exception of base-grade autofile.co.nz for the full version of From there, it was on to the stage with the twin-turbocharged vans, while many heavy vehicles this story and galleries of his photos

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www.autofile.co.nz 9 news ‘Shake up’ for new car industry arallel imports of importing is not illegal, but 2015 vehicles from it hasn’t been done with cars Japan are now until now, and 2 Cheap Cars Pbeing sold in New Zealand. has spent several months 2 Cheap Cars celebrated establishing its supply of the opening of its 16th new vehicles out of Japan. dealership in this country by The scale of his throwing a party at its new company’s used car site in Greenlane, Auckland. purchasing operation in About 150 people Japan allows it to reduce Opening day at 2 Cheap Cars in Greenlane, Auckland, on November 13 went along with plenty the costs of importing and from the industry calling in. in late-model vehicles and is taking clock for $32,989, a Hiace Regius to buy new cars at cheaper rates. Vice-president Darren Marmont its brand offering “to include the with 37km for $35,898, a Vellfire “We see this as a major shake- says: “It was great to catch up with other end of the market with a with 36km for $54,998 and a Land up for the new car industry in New some old friends. lot of the stock being 2015 and Cruiser with 28km for $79,898. Zealand, which can only be good “Our guests included Graeme showing less than 1,000km”. Eugene Williams, chief executive for the consumer,” he adds. “I hope Macdonald, of the Imported Motor “We have plenty of commercials of 2 Cheap Cars, says the parallel to see prices drop.” Vehicle Industry Association, at the moment with the likes of imports it is selling “have never 2 Cheap Cars is targeting a 10 dealers, industry suppliers and Toyota vans and Land Cruisers,” he been registered privately in Japan per cent share of Japanese new members of the public. adds. “As is the case for every yard, or elsewhere before”. cars sales in this country within “We even sold two cars on the we are competing with others to He adds Japan’s new car market three years. opening night and the event was access vehicles and we also aim to is big with dealerships working on Williams says: “We believe the hugely successful for us.” have late-model stock next year.” a quota system, so “the cars they time is right to expand our low- Marmont told Autofile the Its recent 2015 stock has can’t sell, we can import”. margin, high-volume approach into Greenlane dealership is specialising included a Prius S with 77km on the Williams stresses parallel the new vehicle market.”

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10.autofile www.co.nz Delivering quality customer experiences

he poor attitude many your dealership – not all your staff treat all Schedule deliveries so they used vehicle dealerships just now, but in the customers as if they 2are at least 30 minutes apart. take towards experiences future as well. are buying brand-new This allows the process to be theyT create for valued customers It is statistically $400,000 supercars. professional and ensures time when delivering cars continues proven that the Here is a simple is available to be dedicated to to puzzle me. experience they delivery process each customer. Whether your clients are making have is the biggest that helps to $5,000 or $100,000 purchases, the generator of referrals contribute towards Methodically show the new delivery of their new pride and joy to friends, family and MARK GREENFIELD the experience your 3owner at least all of the should not be different. acquaintances. Motorcentral customers deserve: following – how to adjust the Remember that any vehicle You want to give your buyers driver’s seat, how to adjust purchase is hugely significant for every reason to share their stories Whenever possible, ensure the steering wheel and wing most people and, in many cases, and experiences of dealing with 1your staff member who sells mirrors, how to open the the biggest purchasing decision you and your business. the vehicle delivers it. He or bonnet, boot and fuel cap, of their lives except for their So make the most of this time, she has built the relationship, how to keep the bonnet up, homes. stand out from the others who but just because the sale may and how they can check the A new vehicle is something don’t care, and ensure when be done doesn’t mean the oil and water. they are excited about and have delivering vehicles that you and experience is over. aspired to be in a position to You should also show them how own, so don’t let sloppy, lazy to use the air-conditioning system, delivery practices ruin that “You want to give your buyers every how to open and close windows, experience for them. reason to share their stories and how to turn the headlights on and Remember you need to create off, where switches for the window a lasting impression on customers experiences of dealing with you wipers and indicators are, how to as to why they should buy from use the horn, key, remote and alarm, and your dealership.” and where the spare tyre and tools are to change one if required. Showing a customer how to use the stereo is important. If a band expander is fitted, ensure the stations are pre-set and tune in any ones of preference. Spending these 15 minutes with each customer – and making them feel respected and valued by the dealership – is such an important step towards maximising referral and retention rates. This process also requires your salespeople to do their own quality control before delivery to ensure nothing unsuspecting isn’t right that may halt this process – or worse still, lose the sale altogether.

Anywhere. Anytime. Your most important dealership information accessible from any desktop, tablet or mobile device. Faster. Easier. Smarter.

0800 623 687 www.motorcentral.co.nz

www.autofile.co.nz 11 regional report Tourism trickles down to t economy A view of Lake Tarawera near Rotorua otorua is in recovery phase Plans are in place to build a the feel of Rotorua as an accessible guy with Rotorua – it’s one of New evidenced in long-term multi-million-dollar urban tourist tourist destination. The region also Zealand’s best-kept secrets. It has planning through the attraction, including a climbing wall missed out being included on a a tonne of potential and there has Rcouncil’s sustainable economic- complex with cafés and shops, while Jetstar route. been a bit of expansion in the area. growth strategy with a recent surge a large Countdown supermarket The lower pay-out from “With some of the best in residential house sales and a opens in the city next month. Fonterra to dairy farmers in the mountain-biking tracks in the slight increase in their prices. Tourism remains steady with previous quarter has also made its country, it is also close to ski fields, With logging still the primary government estimates showing mark on the local economy. the large centres of Tauranga, industry, the redevelopment of that 9.8 per cent of the region’s Bruce Lowe, dealer principal of Hamilton and Taupo, and with its Waipa Mill owned by Red Stag gross domestic product is gained Rotorua Hyundai and Isuzu, says: lakes and trout fishing Rotorua Timber has provided a much- from this sector, but there are “There has since been some relief remains one of the country’s needed boost to the flagging challenges with infrastructure. around the dairy pay-out and we important tourist destinations.” log-processing industry, previously The end of international flights have seen a slight lift, but there’s impacted by large exports of raw by Air New Zealand to and from always room for improvement. PROPERTY MARKET PICKS UP product to China. Sydney in April somewhat stymies “I am always a glass-half-full Figures released in late October by QV show the region’s housing Rotorua vehicle sales - November 2014 to October 2015 market is on the mend with a 6.1 Used cars New Cars Used Commercials New Commercials Public to Trader Public to Public Trader to Public per cent increase on the previous Nov ‘14 110 81 10 38 95 681 255 year being reported. Dec ‘14 116 49 9 40 105 695 285 With average house prices Jan ‘15 116 77 6 39 100 707 237 sitting at $287,911 and an influx Feb ‘15 82 112 4 46 108 715 255 of buyers from other regions, Mar ‘14 109 142 16 37 107 883 272 Rotorua’s economy looks stable Apr ‘14 89 67 12 35 109 700 240 for the coming quarters. May ‘15 88 83 8 73 119 734 288 Investment in the region is now Jun ‘15 125 68 7 50 91 751 265 crucial, says Lowe. “When we looked Jul ‘15 135 65 14 45 101 847 268 to invest here before we bought this Aug ‘15 118 100 12 61 93 923 302 place in 2013, we went and talked to Sep ‘15 116 105 7 47 75 869 299 a couple of people to get an insight Oct ‘15 116 108 6 51 97 834 318 and our ideas were poo-pooed. Total 12 months 1,320 1,057 111 562 1,200 9,339 3,284 “It was remarkable how many Past 12 months NZ sales 143,292 94,732 8,755 38,408 208,130 495,173 154,638 people asked ‘why would you do Rotorua’s % of 0.9% 1.1% 1.3% 1.5% 0.6% 1.9% 2.1% that? There are better options’. But national sales we just boxed on with it. Rotorua Previous year sales has since started to get stronger Nov 13 - Oct 14 1,208 810 105 485 1,461 8,247 3,204 and the population has started to Units increase/decrease 112 247 6 77 -261 1,092 80 Nov 13 - Oct 14 increase, although slowly.” % increase/decrease Nov 13 - Oct 14 9.3% 30.5% 5.7% 15.9% -17.9% 13.2% 2.5% The 2013 census has its population as 65,280 and it is  Population New Zealand 4,242,051 Rotorua 65,280 1.5% Maori culture in Rotorua draws in visitors from around the world Rotorua’s mountain-biking tracks and geothermal areas are big attractions

12.autofile www.co.nz Rotorua Hyundai and Isuzu

t now increasing at a steady rate. reasons,” he says. “Although we “I think the future is relatively have two good lenders on board, bright,” Lowe told Autofile. “We some people do get turned away just have to ensure we have the because of their credit histories.” right skill-sets and encourage If employment levels increase – families to move here.” Rotorua’s jobless rate is 7.4 per cent At dealership level, he reports according to Infometrics – then excellent sales in new commercials The new Hilux outside Rotorua Toyota credit ratings will improve. with utes “on fire here at the moment”. McKnight says there is not a lot He adds: “We are fortunate RUNNING THROUGH NUMBERS “You’ve only got to look of wealth in the area compared enough to be the dealer for a brand While there was no significant around town on the weekend to to Tauranga and making Rotorua on the up. Isuzu is trucking along change on sales of used passenger see how many push bikes are on accessible should be a priority. nicely and we are seeing a lot of foot vehicles in Rotorua from the the back of cars.” “It is one of New Zealand’s traffic. Our sales are up three times previous year, there has been an Rusty McKnight, of Chance tourist meccas, so the cancelling where they were from last year.” increase of 112 units between Cars, sees unemployment as of the international flights was Alistair Douglas, sales manager November 2013 and October 2014. Rotorua’s biggest challenge disappointing. at Rotorua Toyota, confirms the lift Notably, new car sales jumped because this filters down to “Although tourists aren’t buying in the property market. from 80 units to 108 and new yards, but securing credit can be cars from us, they do come and “There’s been a good commercials from 40 to difficult for some buyers. stay in our motels and visit the lift in housing sales in the 51 over that period. “Getting people to buy cars tourist spots, which pays into the city. Real-estate agents are Alan Murrell, dealer can be a problem for a lot of local economy.” reporting records. We are principal of Redwood close to Tauranga, which Motors, believes there is feeding off the back is still some way for of Auckland’s housing dealerships to go market, and we are getting before feeling the NYK VEHICLE some overflow from that. positive effects of the EXPRESS SERVICE “The property market “I am tourist trade. here had been stagnant always “Tourism has always for a few years, so that plodded along, but I Reliable fortnightly little boom also drives a glass- don’t think the yards see confidence for the region. direct results from that vehicle logistics “Sales are good and half-full because tourists aren’t service JAPAN to NZ we’ve seen a lift from here to buy cars,” he says. last year. Obviously we guy with “However, if you talk to have the new Hilux being Rotorua hoteliers and moteliers, PORT TO PORT / released as we speak and – it’s one they seem to think trade DOOR TO DOOR that’s a huge positive. is fairly buoyant and to Auckland, Christchurch, It’s the country’s best- of New we are noticing a lot of selling four-wheel-drive locals coming in for the Wellington, and Nelson commercial and with the Zealand’s mountain-biking tracks, logging we are a four-by- which are among the four town. best-kept best in the world. Full MPI inspection  “The whole city secrets.” “Weekends can get service from Kawasaki, really does feed off the – Bruce Lowe busy in town as visitors Osaka, Nagoya and Moji logging industry in from other regions one form or another. Things are take advantage of the area’s SUN PHOENIX CO.,LTD. + Marine Insurance available picking up, but it seems to go up natural resources. P C and down quite quickly. “We have some of the world’s For eFFIcIent custoMer Focused servIce “As an example, I heard the best trout fishing and are two largest logging ship to ever leave hours to the ski fields. It’s an hour contact NYK New Zealand departed the other to Tauranga and Taupo, and hour Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 day for India, so new markets are and 10 minutes to Hamilton. It’s a email: [email protected] opening up.” great part of the world.

www.autofile.co.nz 13 Vehicles wanted dealers Buying now News in brief Automotive sector leads way at workplace awards Vehicle Testing NZ (VTNZ) has taken out a top honour at the 2015 IBM Kenexa Best Workplaces Awards. About 30,000 employees from 193 organisations took part in a survey as part of the programme. Forty-one made the finals across five categories – small, small to medium, medium to large, large and enterprise. VTNZ took out the title for best enterprise workplace, while most- improved honours went to the Motor Trade Association, AA Insurance, Hyundai Motors NZ and Trade Me. The awards are this country’s largest and longest-running study of “workplace climate and employee engagement”. Employees grade where they work across key categories such as leadership, development, recognition and staff engagement. Mars NZ ® We like cars. won this year’s overall title. Farmer AutovillAge But we love drivers.

Audi, Volkswagen, Skoda ...... Blair Woolford 021 0367706 Hyundai ...... Heath Kendall 027 8552681 First model in marque’s top-end brand unveiled Nissan and any other brand ...... Brett Harris 029 2931232 Hyundai has revealed its first Subaru, Chrysler, Jeep, Dodge, Fiat & Alfa ...... Warren Carter 021 863503 rendering of the Genesis G90, pictured, as the flagship sedan for its new premium brand. Buying: Vans, Utes, Light Trucks. Nationwide. The model will also succeed Hyundai’s Equus, which is Contact Gareth 021660180 [email protected] www.317.co.nz slated to be phased out. To advertise here, contact: The marque describes the G90 as “elegantly designed” and packed with technology. It will form [email protected] or ph 021 455 775 the basis for the design cues of Genesis, which will launch five more nameplates through to 2020. Finance company predicts challenging conditions EuropEan VEhiclEs WantEd Profits made by Motor Trade Finances (MTF) before commission and fair- value movements have increased by 6.9 per cent to $45.2 million thanks to strong asset growth in recent years. Commission paid to shareholder originators has increased by six per cent to $33.4m, while originator payments rose by 3.3 per cent to $51.7m. In the past financial year, MTF’s underlying profits after tax increased by 21 per cent to $8.1m. Glen Todd, chief executive officer, reports sales have decreased by 7.3 Audi, BMW, Mercedes, Porsche, per cent in 2015 after a record year in 2014. Maserati, Jaguar and Land Rover “MTF’s market of used car finance has come under pressure with the high New Zealand dollar making new cars attainable for consumers,” he says. Phone Glenn 021 431 685 “The market generally remains competitive. We anticipate conditions to be challenging and growth difficult to achieve as demand for credit abates. commErcial VEhiclEs WantEd “MTF will target growth in quality lending by expanding car dealer and franchise distribution, and increasing our focus on retention of preferred existing customers.” Industry leaders elected onto board across Tasman The Australian Imported Motor Vehicle Industry Association held its annual general meeting on October 20. Additions to its executive committee are Euan Philpot, chief executive Vans, Utes, RV/SUV of JEVIC NZ and a director of its parent company, and Daryl McIntyre, managing director of Autohub Australia. Phone Cory 027 203 5701 The executive committee now consists of president Jack Sandher, vice-president Ross Pendergast, treasurer Zoran Todorovic and secretary Andrew Troha with Philpot and McIntyre as members. About 30 members from organisations in the imported vehicle supply chain attended the meeting in Sydney. The association now has a lobbyist www.corporatecars.co.nz in Canberra to help get its message across to ministers and officials.

14.autofile www.co.nz news Getting in swing for charity bout 90 people teed off at $15,000 over the past two years since a golf day to support an it became a principal beneficiary. organisation that helps “We like to support Ateach youngsters in New Zealand organisations that do not receive about health issues. any taxpayer funding and know Protecta Insurance supports money raised goes towards paying the event each year, which was for its great work in the community. well-attended by car dealers, “I would like to thank everyone members of the finance and who took part in the event and automotive industry, and a all of our sponsors for helping to number of suppliers. make it such as success.” The fundraiser for the Life The trust works with about Education Trust on November 9 at Above: Brian McCutcheon of 4 Media Ltd, Murray Greig of Loansmart, Craig Stewart of Metro 245,000 primary and intermediate Motors in Hamilton, Harold – the Life Education Trust’s mascot, Ron Gibson of Protecta Pakuranga Golf Club in Auckland Insurance, Eugene Elisara of Allianz NZ and Stephen Glading of Protecta school children each year by was followed by a prize-giving Below: The Finance Now team – Sudesh Reddy, Andrew Brough and Brett Williams taking a preventative approach ceremony, light dinner, drinks and to health matters. an auction. Its work is linked into the Stephen Glading, managing curriculum, but it attends schools director of Protecta, says: “Over by invitation and not by right. the past few years, the event has Rather than frightening been sponsored by Continental youngsters with scare tactics, it Cars – Audi and AA Roadservice focuses on creating sensitivity along with a number of industry to values, which lead to an hole sponsors. understanding and appreciation “We have assisted the Life of life, while Harold the Giraffe – its Education Trust in raising more than mascot – makes learning fun. Car sales boost economy VEHICLES WANTED ehicle sales have resulted The value of those transactions in the automotive sector climbed by 5.4 per cent – or by topping national figures $143m – after a 0.4 per cent, or Mercedes Benz Vfor retail growth in the September $10m, rise in the June 2015 quarter. 2015 quarter, says Statistics NZ. The September quarter’s boom Volkswagen Total transactions across all in automotive retailing was the Nissan industries were worth $19.2 billion in largest dollar-value increase since the reporting period – up by 4.8 per Statistics NZ’s series began in Lexus cent and by $874 million compared September 1995. to the same period of 2014. Sales of vehicles and parts have Kia After removing the effect of risen steadily for five years and are 45 price changes, total retail sales per cent higher than the most recent volumes rose by 5.7 per cent. fall in the September 2010 quarter. Toyota The motor-vehicle industry When adjusting for seasonal contributed almost one-quarter effects, the volume of total retail Chrysler of the overall boom with an sales across all sectors rose by 1.6 increase of $193m. per cent during the last quarter. Jeep “Several car dealers told us they This increase follows a modest experienced a busy September rise of 0.1 per cent in the previous Dodge quarter and were on target to quarter, while 10 retail sectors had achieve record sales this year,” says higher seasonally adjusted figures We are always looking to purchase late model Neil Kelly, Statistics NZ’s senior for the past quarter. NZ NEW CARS AND COMMERCIALS manager of business indicators. Other big gainers were electrical The volume of sales in vehicle and electronic goods – up by 6.6 PAUL CURIN 0274 333 303 [email protected] and parts retailing rose by five per cent, and food and beverage per cent in the September 2015 services – up by 2.4 per cent. quarter after a one per cent Visit www.autofile.co.nz for an miles motor group increase in the June quarter. in-depth story with graphs.

www.autofile.co.nz 15 I ndustry movers NZ labour market report

GRANT SMITH, former general manager of Porsche The country’s unemployment growth of 6.1 per cent or 8,100 NZ and ex-head of Sime Darby’s distribution operations rate increased to six per cent in the people. in this country, has returned to the marque. September 2015 quarter – up from The Tasman, Nelson, He is now general manager of Porsche Centre Hong 5.9 per cent in the June quarter, Marlborough and West Coast Kong and Macau. reports Statistics New Zealand. experienced a 5.7 per cent Smith left Sime Darby in April as part of At the same time, 11,000 fewer unemployment rate, which was restructuring to closer align its Australasian operations. people were employed for the up by 2.1 percentage points. first quarterly decline in the total Unemployment rates differed JAZ ROGERS has joined Motorcentral’s team in for three years. between the sexes. For men, the Auckland as business development and account “Until recently, the labour number of jobless rose by 4,400 manager. market has been keeping pace while the total for women fell by She has more than 14 years’ experience in the with New Zealand’s population 1,500 in the September quarter. automotive industry, and has spent much of her growth, but in the past three These statistics resulted in a career with Toyota franchises in Australia and more recently with the months this has changed,” says 5.6 per cent unemployment rate software provider to Toyota dealerships. Diane Ramsay, labour market and for men – up by 0.4 per cent – and household statistics manager. 6.6 per cent for women for a drop DARREN MARMONT has been appointed a vice- “This quarter also had the of 0.1 per cent. It was the highest president of 2 Cheap Cars. largest increase in the number of male unemployment rate since He was previously national sales manager with people outside the labour force the September 2013 quarter. Motorcentral and before that he worked for Autosure NZ. since the March 2009 quarter.” The labour force participation “I’m delighted to be part of the team at 2 Cheap Cars,” For the year to the September rate for this year’s September says Marmont. “It’s a big family, on the move, growing and evolving.” quarter, annual employment quarter was 68.6 per cent, down growth slowed to 1.5 per cent by 0.7 percentage points from PETER AITKEN has retired as an independent director of the Colonial – down from three per cent the June quarter and from the Motor Company after taking up the position in 2007. He was previously in the 12 months to June – March quarter’s record high of managing director of Mazda NZ. although the construction sector 69.5 per cent. “Peter’s experience was with the franchisor, import and supply areas,” performed well. The rate has now reverted to says Jim Gibbons, chairman of Colonial. “We will miss his awareness of Auckland’s annual the same level as in June 2014. the dynamics of the industry.” employment growth has fallen Despite the growing working-age Ash Waugh has replaced Aitken. Waugh started his career with Ford after a particularly strong period population, the labour force – in New Zealand before becoming its marketing manager. He then of expansion over the past two unemployed and employed – has worked for Ford LioHo in Taiwan. years. It has slowed to 1.5 per failed to expand at the same rate. cent – or by 11,500 people – and While Auckland made the CHRIS MOLLER has been reappointed as chairman of the board of was down from 3.9 per cent in the greatest contribution to year-to- the NZTA. year to June 2015. date growth in the working-age “He is a professional director with experience in finance, accounting The city’s construction population up to September with and general management,” says Simon Bridges, Minister of Transport. “He industry has boomed with 36,800 people, it also had 23,700 has successfully led the board since being appointed in March 2010. 14,700 more jobs, while the retail more out of work. Mark Oldfield has been reappointed as a member of the agency’s board. trade, accommodation and food- Over the same period, labour- service sectors employed 8,400 force growth was highest for BEN HUNT, winner of 2015 NZ Rally Championship, is more people. 20 to 29-year-olds with 35,900 now a brand ambassador for Subaru of New Zealand However, decreases in more people in jobs. This came with the use of a new WRX STi NR4 as part of the deal. financial and insurance services, from increases in the numbers Wallis Dumper, managing director of the marque, manufacturing and wholesale employed – 28,300 – and 7,600 says: “Ben is a sponsor’s dream. He’s humble, hard- trade contributed to Auckland’s unemployed. working and grateful for the help he has been offered over the years.” overall slowdown. In comparison, increases in those Canterbury’s annual outside the labour force came from JAMES GOODWIN has replaced Nick Clarke as ANCAP’s chief employment growth continued to people aged 50-54 at 10,900, and executive officer. ease by going up by 1.3 per cent those aged 65 and over at 14,100. He has moved to this position from the Australian AA where he or by 4,200 people overall. The growth in numbers not in the was director of government relations and communications, as well as The Garden City saw 5,400 labour force came predominately having a period as acting chief executive. extra jobs created in the from 20,100 retirees. Goodwin also worked for the Federal Chamber of Automotive agriculture, forestry and fishing Annual wage inflation, as Industries following a journalism career in Sydney and Canberra. sectors, along with 5,000 more measured by the labour-cost people employed in construction. index, remained at 1.6 per cent TO FEATURE IN INDUSTRY MOVERS The Bay of Plenty had a for the September quarter, which EMAIL [email protected] statistically significant – and the compared with annual consumer highest – annual employment price inflation of 0.4 per cent.

16.autofile www.co.nz f & i focus Counting cost of lost opportunities

t often astounds me the more through missed same treatment when F&I is a major revenue stream number of dealers trying to opportunities. it’s time to consider all for franchises when compared to simultaneously cover sales and This was hammered of the F&I options they other departments with higher Ifinance and insurance (F&I) roles. home during a Deloitte need to protect their head counts and overheads. When I ask why they haven’t course – the critical future motoring. Why should used-vehicle considered hiring a dedicated F&I number is thought to With a quality retailers not take advantage manager, the answer is always “it be about 30 retail units handover and sense of the same opportunities by costs too much”. per month. they are dealing with an taking a leap of faith and hiring a

It is Protecta’s goal to work with Is your dealership SIMON MOORE expert, an instant level dedicated manager for this part business partners to increase their operating at this level Motor-trader development of trust is established. of the business? manager profitability and it often takes a of turnover, and still Protecta Insurance With the customer The team at Protecta is change in that mindset regarding trying to wear the still in buying mode, it’s happy to come out and discuss such positions. sales and F&I hats? Are you missing then that a well-trained F&I manager options, such as a review of your There are many other benefits opportunities? Is your business slow can focus on uncovering things, such dealership, profit-projection in addition to extra long-term to respond to inquiries due to being as how the buyer intends to pay analysis and help transition income a dedicated F&I person tied up with an F&I application? or insure the vehicle and offering to a dedicated F&I office with will generate, such as customer Are you exhausted after test superior well-priced alternatives. customised point-of-sale material. satisfaction and long-term drives, negotiation and sale Because of the trust factor, Some of our long-term partners protection for the dealership. closures before moving into the customer retention is enhanced. even ask us to advertise for and There are a critical amount of retail finance office, and as a result only Clients will often call in to ask about interview potential candidates. sales positions required depending offering F&I if asked? their policies or finance contracts. We also take great pride in these on the yard’s size, and stock held Think about it from the This provides first-hand knowledge appointments, and train, monitor, and sold. There is also a point at customers’ perspective. They of what they may be thinking measure and coach people in new which not having a dedicated F&I have spent a lot of time with the about in terms of refinancing, roles while proving their worth to manager will start to cost the business “vehicle expert” and deserve the reinsuring or trading in. the dealer principal.

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www.autofile.co.nz 17 disputes

The case: The buyer wanted Adjudicator accepts faults may be to reject her vehicle under the Consumer Guarantees Act (CGA) after she found its sub-frame overlooked in compliance process was faulty. The trader said the car passed three inspections, so it must have been damaged after it was Background The following day, when Autozone about the damaged supplied. Donna Guy bought a 2005 Toyota Guy was driving the car to her sub-frame, which offered to The dealer Estima from Glenfield Wholesale Palmerston North home, she heard pay to have it replaced. The decision: was ordered to refund the Estima’s Ltd, trading as Real Wholesale Cars, an unusual road noise and stopped. Guy told the tribunal she purchase price, the buyer’s costs to on June 13, 2015. She discovered its two front tyres was the vehicle’s sole driver and replace faulty tyres and her costs to attend the hearing. The trader had She rejected the Japanese were flat as was the spare. she hadn’t been involved in a to collect the car at its own expense. import because it had a damaged Her husband bought a pump crash involving the Estima since sub-frame, which she claimed and reinflated them before buying it. At: The Motor Vehicles Disputes made it unsafe, and wanted her she drove the vehicle to North The trader said during the Tribunal, Auckland. purchase price refunded. Waikato Tyre Centre, which found car’s safety systems compliance The dealer said the vehicle the front tyres and space saver check on October 3, it was found wasn’t imported damaged, had had faulty valves. the front tyres were replaced and faults might be overlooked during passed border checking and Guy emailed the trader’s rear sill damage was repaired. compliance inspections. compliance, and later passed a manager before buying It added that it was Its assessor said corrosion warrant of fitness (WOF). replacements for $440, but unlikely damage to the sub- around the sub-frame’s damaged None of these inspections received no reply. The dealer later frame was missed during areas would have taken at least found the sub-frame to be faulty refused to reimburse her and said border, compliance and WOF several months to get into its and the dealer claimed any she should have discussed the inspections, and it believed present state. damage could have occurred after issue with it before buying them. the vehicle might have been It was possible the damage Guy took possession of the car. A month later, she noticed the damaged by the buyer. occurred while the vehicle was The trader said it wasn’t brakes felt soft and took the car being test-driven by another responsible for the problem and to her mechanic, who bled them The finding potential buyer or by a member denied Guy was entitled to reject it. and drew her attention to its The tribunal took into account of the trader’s staff between damaged sub-frame. the Estima was a 10-year-old October 2014 and June 2015. The case Guy contacted the trader three Japanese import that had In summary, the tribunal Guy saw the Estima on Trade Me days later to notify it about the travelled 116,500km when sold ruled the fault was more than on June 10. The advert stated the structural issue and that she had for $9,500. likely present when the car was AA had carried out a pre-purchase taken it to VTNZ, which told her It found its tyre valves had supplied to the buyer. inspection, and the car had “AA the vehicle shouldn’t have passed perished making the tyres unsafe It ruled the damaged sub- xxxxxxxxx certified mileage” and was “AA a border check. She asked the when it was supplied and it had frame rendered the vehicle unsafe xxxxxxxxxxx appraised”. The buyer said she was trader how it wished to proceed. serious structural damage, which under section 21 of the CGA and attracted to the vehicle because of On July 15, she emailed the was found a little less than one agreed with the purchaser that Annual high for stockpile Industry manages levels well always been the way. he amount of stock held 1996, it has ebbed and flowed.” units, are more static with their these three things. dealer stating she wanted it to month after the vehicle was sold. she was entitled to reject it. did come down after the global Christchurch are boosting sales. “You can oversupply when tock levels of new cars have that dropped to this year’s low of by used car dealers during Used car stock levels are holding not changing too much. financial crisis [GFC]. “Trades people are upgrading buying conditions are good, but increased every month 18,653 in January. October was the highest traditionally based on what’s A drop of 50 units may not be “Stocking levels then increased their vehicles,” says Crawford. too drastic. But stock can vary the marketplace normally corrects The purchaser had a friend in take the car back because “it was The tribunal accepted Guy’s except one this year, with David Crawford, chief executive Tmonthly total of the year. happening in Japan and what again and they respond to the “Although passenger cars aren’t so enormously by proportion on yards itself by pulling back from Japan or SOctober’s total of 29,509 being the officer of the Motor Industry There were 10,374 units consumers are buying here. number of new vehicles sold and hot, SUVs are. with 30 to 40 cars. selling down. The numbers might highest of 2013. Association (MIA), says current imported last month with a Conditions there have improved Auckland inspect and test drive it. not fit for purpose”. evidence it hadn’t been involved Orders the rate at which they are sold. “People in the housing market “They can suddenly be selling drop for a month or two before There were 7,962 sales last models aren’t sitting around in variance of 1,829 on 8,545 sales. recently and the exchange rate “They basically go up when are refinancing their mortgages without having bought for a few trundling up again. month, also this year’s biggest stock for too long. The number of cars in stock has gone up. sales go up, but I’m not so sure to buy big-ticket items especially weeks and being 10-15 units down “There’s no magic supply-chain He reported it appeared to have The AA informed Guy it hadn’t in an accident that could have The application to reject the amount, while the variance was “The industry tends to manage amounted to 9,323 compared to “October and November are about the days stock is held for when they are confident about makes them more susceptible,” miracle. When it’s slow, it tends to be 1,400 with 9,362 units imported – stock levels quite well and does this 7,494 in September. normally difficult for the industry, being longer and can’t explain that. keeping their jobs.” says Macdonald. slow for everybody. If you can get no faults and drove well. done a pre-purchase inspection affected the sub-frame, so the Estima was upheld. The trader the second highest amount after day in, day out,” he told Autofile. There have been two other so the stockpile tends to go “Average sales per day came All that said, some of the “Dealers then jump online to good supply with a good exchange 11,065 imports in August. “My data suggests this is a major increases during 2013 – with up,” says Macdonald. “But trade The TRUSTED online down during the GFC and before regional centres, such as Hawke’s buy more from Japan, but that’s rate, everyone benefits.” The total stock figure at the cyclical thing and levels were no variances between imports and sales swings up over Christmas and the Guy didn’t require the trader of the vehicle, but had carried out damage must have existedwholesale at trading the site. had to refund the vehicle’s that they were much higher.” Bay and Palmerston North, aren’t end of December was 20,683 and higher in previous years, but they holidays, so it goes down. showing as much growth as of 3,121 in April and 2,507 in May. If 80,000 vehicles are sold one “December and January are autoport.net other centres. Graeme Macdonald, chairman Dealer stock of used car imports in New ZealandOct 2013- to provide a copy of the pre- an appraisal on December 8. time of sale. purchase price of $9,500, the year and 100,000 are sold the good months for sales because Oct 2013 “But 80 per cent of New Zealand’s of the North Island branch of the AVerAge dAyS Dealer stock of new cars in New Zealand - following year, the average sales USed ImportS 10000 Imported Motor Vehicle Industry people take time off work, the kids Imported VArIANCe StoCk SALeS per StoCk population is in Auckland and 2012 SoLd dAy - ytd At hANd AVerAge dAyS per day should be higher – and are off school and people may have purchase inspection report before She emailed the trader The trader claimed there h e$440 to replace the tyres and the NeW CArS VArIANCe StoCk SALeS per StoCk Association, says the current 2012 Imported SoLd the MIA is expecting more new Christchurch. 8,579 t t hANd Whangarei Auckland Hamilton cThames dAy - ytd A stockpile should correct itself – as it Christmas bonuses or holiday pay. Total stock at the end of December 2011 o vehicles to be sold this year than “If you add in Dunedin and Taurangad Rotorua Gisborne Napier New 12,984 “It’s a time when Kiwis tend to 3,191 6,375 (3,184) 5,395 206 26 9500 Plymouth MIA stock estimate as at end of December 2011 Wellington, these centres cover a normally does. Jan ‘12 agreeing to buy it for $9,500. rejecting the car on July 17, and wasn’t any such problem before buyer’s costs of $288 to attendBiggesti ncreases/Decreases the during 2012. 210 21 Wanganui Palmerston u 10,511 242 43 “If the monthly stockpile was make financial decisions, so dealers Feb ‘12 4,920 6,000 (1,080) 4,315 n North Masterton Wellington Jan ‘12 5,026 7,499 (2,473) There were 54,404 sales in 2009, large proportion of the population By town year-on-year need to have plenty of stock to 6,429 75 4,390 209 21 Nelson Blenheim Greymouth Whangarei Auckland n 7,368 5,633 1,735 12,246 223 55 10,000 on a regular basis it means Mar ‘12 6,504 Feb ‘12 62,029 in 2010, 64,019 in 2011 and all have strong economies.” 25 u (OctOber 2013 vs OctOber 2012) 218 59 match demand. 6,613 5,877 736 5,126 206 She collected the vehicle on again on August 3, requesting a it was supplied because it wouldHamilton Thames Tauranga hearingRotorua Gisborne – a total of $10,228. Mar ‘12 7,228 6,499 729 12,975 Year to date, 77,438 new cars there are solid holding numbers,” Apr ‘12 and 76,871 in 2012, and the MIA is 900 6,026 208 29 9000 t 209 66 “When the market’s down in 7,693 6,793 Apr ‘12 6,285 5,430 855 13,830 he told Autofile. “North of that May ‘12 Napier New Plymouth Wanganui Palmerston North Biggest increases predicting about 82,000 passenger have been imported and 68,612 208 33 o 15,630 205 76 Japan, stock is hard to get. When Jun ‘12 6,947 6,184 763 6,789

May ‘12 7,742 5,942 1,800 and we would be looking at an r new have been registered to give a June 13. It had a new WOF issued refund of her purchase price. have been detected. Masterton Wellington Nelson Blenheim GreymouthThe dealer was instructed to Used vehicle and SUV sales this year. 6,641 (1,306) 5,483 209 26 8,870 7,142 1,728 17,358 211 82 oversupply issue. it’s buoyant, you tend to buy what Jul ‘12 5,335

westport  100.0% Blenheim  Jun ‘12 variance of 8,826 so far this year. r Westport Christchurch Timaru Oamaru Dunedin 95.5% “We’re looking at about 30,600 210 21

209 91 you can because you don’t know Aug ‘12 5,540 6,621 (1,081) 4,402 y t  6,208 1,686 19,044 “There was good buying in Japan 8500 hames 51.2% nelson  Jul64.9% ‘12 7,894 Days with stock at hand has

Invercargill Whangarei Auckland Hamilton Thames light commercials and we’re on 5,506 6,222 (716) 3,686 209 18 by Autozone Services. On July 22, Guy notified However, the tribunal accepted collect the car at its ownnapier expense. 34.1% 8,589 5,959 2,630 21,674 207 105 in March, and we saw high arrival what will be available next time. Sep ‘12 17% A rotorua  Aug52.0% ‘12 been steadily increasing from 78 in New Passenger Vehicle Sales by Make - 12 Tauranga Rotorua Gisborne Napier New 209 105 track for 112,000 or 113,000 new 5,688 6,867 (1,179) 2,507 211 Plymouth Sep ‘12 6,828 6,637 191 21,865 numbers in April, May and June. “Dealers also need to bear in Oct ‘12 January to 131 in October. November 2013 213 18 211 107 vehicle sales overall.” Nov ‘12 8,486 7,183 1,303 3,810 Wanganui Palmerston North Masterton Biggest decreases Oct ‘12 8,155 7,336 819 22,684 Make “The stockpile occurs more at mind it takes four to six weeks to New Passenger Vehicle Sales by Model - Business confidence being Last year 90,754 units were Nov '13 (705) 3,105 215 14 new Used 6,484 2,469 25,153 212 119 Nov '12 +/- % Novget '13stock from Japan.” Dec ‘12 6,414 7,119 November 2013 8000 Wellington Nelson Blenheim Greymouth Whangarei Nov ‘12 8,953 certain times of the year. Since Mkt Share 2013 total 2013 Mkt w  imported and there were 76,871 Finance anganui 27.7% westport  41.7% 26,867 211 128 high and strong regional Toyota Share Make ytd totalModel 72,837 78,311 (5,474) Auckland Hamilton Thames Tauranga Rotorua Dec ‘12 7,816 6,102 1,714 I came back into the industry in Larger operations, of say 300 Nov '13 Nov '12 Nov Mkt 41% gisborne  26.8% sales for a variance of 13,883. 1746 1190 +/- % 2013 2013 Mkt Masterton  20.0% TWO SAILINGSeconomies in AucklandPER and MONTH JAPAN TO NZ46.7 23.4% Share o 90,754 76,871 13,883 14670 total c timaru  ytd total Holden 19.3% Toyota AVerAge dAShareyS t 3 23.7% timaru  12.4% 685 Corolla USed ImportS 850 wds o 1 673 626 SALeS per StoCk ber 20 1.8 9.2% 8102 2013 Imported 462 VAr35.5IANCe Sto8.4%Ck 7500 AVerAge dAyS Ford Days stock in nZ - UseD import cars 10.7% Toyota SoLd dAy5283 - ytd At 6.9%hANd NeW CArS Ck Days stock in nZ - new cars 618 596 RAV4 Imported VArIANCe StoCk SALeS per Sto 3.7 8.3% 289 80 261.3 2013 SoLd dAy - ytd At hANd 6519 8.6% Total stock at the end of December 2012 31053.9% 2521 3.3% Hyundai 180 572 Holden Commodore PassengeR Vehicle RegistRatiOns 180 LATEST SCHEDULE 624 -8.3 260 0.7 Used Vehicle RegistRatiOns 26,867 7.7% 6695 4,468 7,397171 52.0 (2,929) 3.5% 176 239 New versus used Total stock at the end of December 2012 Mazda 8.8% Mazda Jan ‘13 2399 3.2% North IslaNd versus south IslaNd 160 512 Cx-5 243 6 12% 238 104 160 485 5.6 8,247239 6,922 1,325 1,501 7000 Jan ‘13 5,355 7,385 (2,030) 24,837 6.9% 5447 Feb ‘13 141 69.5 3.2% 2013 10000 Hoegh Xiamen Nissan 7.2% Toyota 1989 243 2.6% 11 7000 223 117 Sepang Express Morning Miracle 140382 yaris 8,852 7,581 1,271 2,772 Feb ‘13 7,027 Port 5,799 Calls 1,228 26,065 Liberty 281 35.9 Mar ‘13 227 140 5.1% 3342 267 -15.0 3.0% 244 24 6740 25,594 222 115V20 Suzuki 4.4% Apr ‘13 10,539 7,418 3,121 5,893 2235 2.9% 9000 Mar ‘13 6,329 6,800 (471) V9 V5 376 Suzuki Swift 6000 2013 V1120 405 -7.2 218 34 216 125 120 5.0% 4436 10,967 254 8,460 -14.2 2,507 8,400 250 Apr ‘13 7,391 5,908 1,483 27,077 Mitsubishi 5.8% May ‘13 2.9% 2750 3.6% Used Ford Payment 2012 Osaka 20 Oct 351 272 Mondeo 227 8,627 252 34 6500 8000 8545 1,082 28,159 214 132 30 Oct 15 Nov 100 29.0 4.7% Jun ‘13 8,089184 7,86298 protection 14% 5000 North Island May ‘13 7,429 6,347 100 29 Nov 3661 4.8% 87.8 2.5% 1201 New Honda Hyundai (1,006) 7,621 261 1.6% 29 7,542 509 28,668 220 130 310 312 Jul ‘13ix35 8,623 9,629

7962 8,051 stock of Days -0.6 Jun ‘13 Nagoya 21 Oct 80 4.2% 2994 168 81 107.4 29 7000 4000 220 138 stock of Days 80 31 Oct Volkswagen 3.9% 8,635 8,648 (13) 2.3% 7,608 1338 263 New Jul ‘13 8,423 6,769 1,654 30,322 16 Nov 30 Nov288 Mitsubishi Aug ‘13 1.8% 2012 261 10.3 Lancer 262 29 220 157 60 3.9% 3527 Sep ‘13 7,501168 847,615 100.0 (114) 7,494 11,065 6,828 Subscribe 4,237 34,559 60 Kia - FREE4.6% 2.3% 894 Aug ‘13 Yokohama 1.2% 6000 6000 3000 22 Oct 1 Nov 202 240 Toyota Camry 9,323 263 35 (266) 34,293 222 154 17 Nov 1 Dec -15.8 2.7%2013 Oct ‘13 10,374168 8,545 1,829 Sep ‘13 7,006 7,272 B 40 2563 3.4% 131 28.2 2.3% Used 40 Mw 172 - - - 1270 - 1.7% - 5000 2000 7,962 1,400 35,693 226 158 178 Holden NovCaptiva ‘13 - South Island Oct ‘13 9,362 Auckland 7 Nov -3.4 2.3% 1861 135 319 13% 1805 17 Nov 4 Dec Subaru 20 2.4% - - -57.7 - 1.8% ------20 19 Dec165 2012 Dec ‘13 2039 2.7% Nov ‘13 153 7.8 Volkswagen Golf 4000 1000 - - 2.2% 1645 86,295134 103 80,077 6,218 5500 Dec Dec ‘13 - Wellington - - - Audi 0 2.2% ytd total 30.1 1.8% 1469

13 Nov n

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E ‘13 JUL A total a 79 A Jul ytd J

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J Ford Apr Ju S Lyttelton M 82 M A Feb Mar 2013‘13 Oct predicted sales 82,380 16 Nov 29 Nov 56.1 1.7% Focus Jan 11 Dec Peugeot 29 Dec 1398 1.8% 114 212 -46.2 22% 108 1.5% 1429 1.9% 60 80.0 Honda Jazz & 1.4% 1001 1.3% 113 76 8500 Jeep 48.7 1.5% 922 92 65 SPONSORSHIP41.5 OF THE NEW AND USEDFord COMMERCIAL STATISTICS 1.2% 1.2% 775 Kuga 112 Usedi mPORt PassengeR Vehicle RegistR Ssangyong PAGES IS NOW AVAILABLE1.0% FOR YOUR BUSINESS 18 522.2 1.5% atiOns by city for the latest industry news86 49 Mazda 952 1.3% aucklaNd, wellINgtoN, chrIstchurch 75.5 1.2% Mazda3 hamIltoN, tauraNga, duNedIN, PalmerstoN North TARGETED ADVERTISING SPACE Dodge 724 1.0% 109 151 -27.8 PORT TO DOOR SERVICE 64 1.5% 1537 2.0% ConneCt engage4500 8000 4320 46 39.1 Toyota Aurion GENEROUS REWARDS For all enquiries0.9% contact478 Brian 0.6%on 021 455 775 or email brian@autoﬁ le.co.nz107 600 Skoda 23 365.2 1.4% 9% 4000 INCLUDING:SHOULDN’T WE BE LOOKING AT YOUR BUSINESS? 63 56 12.5 Holden 447 0.6% 0.8% 654 Cruze New Passenger registrations - 2012-2013 PROGRAMMELexus 0.9% 106 80 32.5 3500 500 Hamilton 54 1.4% 1925 2.5% 8500  44 22.7 0.7% Hyundai Santa Fe Auckland 7500 MPI Border inspection 508 0.7% 103 www.autofile.co.nz | 27 3000 Land Rover 261 -60.5 1.4% 495 Ship your motor vehicles on 51 22 131.8 1847 2.4% 18.autofile www.co.nz 400 0.7% 443 Honda Civic 8000 2500  Mini 0.6% 100 115 26 | www.autofile.co.nz -13.0 Insurance Odometer certiﬁ cation Armacup vessels and you 44 43 1.3% 852 1.1% 16% Tauranga 2.3 0.6% Mitsubishi Outlander 2000 300 Chery 474 0.6% 97  34 118 -17.8 1.3% 7500 7000 290 Digital Photography for prior sales in NZ can earn seamiles points for 21 61.9 Hyundai 1258 1.7% 1500 0.5% 351 i30

Vehicles sold Vehicles Dunedin 0.5% 200 Alfa Romeo 95 103 -7.8 Christchurch 1185 sold Vehicles 229 24 31 1.3% 1255 1000  -22.6 0.3% Nissan 1.6% 216 NZ Customs clearance air travel (only applicable to 182 0.2% Qashqai 7000 Great wall 93 106 -12.3 729 23 38 1.2% 500 100 Palmerston Nth -39.5 0.3% Toyota 884 1.2% 6500  used imports) Fiat 211 0.3% LandcruiserPrado 87 Wellington Delivery Nationwide 21 38 128.9 6500 0 2 950.0 1.2% 557 0.7% 0 0.3% 142 Nissan x-Trail Renault 0.2% 86 52 ‘13 21 65.4 ‘13 

b ‘13 b 1.2% r ‘13 r

y ‘13 y 8 L ‘13 L

N ‘13 G ‘13 G 779

‘13 162.5 E Insurance 1.0% b ‘13 b A

r ‘13 r A

y ‘13 y u 0.3% L ‘13 L EP N u Ford Nov ‘12 Nov ‘13 G

DEC ‘12 DEC F JAN ‘13 JAN 6000 E APr ‘13 APr 98 A J Ju S A Territory M

u M A EP Oct ‘13 Oct u 0.1% Nov ‘12 Nov

DEC ‘12 DEC F JAN ‘13 JAN Volvo APr ‘13 APr

Ju S M 83

M A Oct ‘13 Oct 137 6000 18 19 -39.4 1.1% MBI -5.3 0.2% Volkswagen 1188 1.6% Porsche 229 0.3% Tiguan 13 78 53 47.2 5500 11 18.2 1.0% 689 0.9% 43% 2012 2012 0.2% 182 0.2% Hyundai Accent Citroen 77 29 12 16 -25.0 165.5 1.0% 5500 0.2% 286 Honda 572 0.8% 5000 2013 Jaguar 0.4% CRV 71 2013 PHONE 12 5 140.0 82 -13.4 1.0% 0800 ARMACUP (276 2287) or 09 303 3314 0.2% 128 Mazda 793 1.0% Jan Chrysler 0.2% Mazda6 Feb Mar Apr May Jun UK, Japanese and local vehicles. 10 13 70 82 -14.6 Jul Aug Sep Oct -23.1 0.1% 0.9% 960 1.3% Nov Dec 5000 Can-Am 120 0.2% Mazda Mazda2 EMAIL [email protected] 9 6 66 77 -14.3 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 50.0 0.1% 0.9% 712 0.9% Finance available. Daihatsu 75 0.1% Ford Falcon 6 19 65 45 44.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -68.4 0.1% 0.9% 835 1.1% www.armacup.com Aston Martin 258 0.3% Nissan Pathfinder The TRUSTED online wholesale trading site. 4 1 65 7 828.6 300.0 0.1% 0.9% 191 0.3% Maserati 25 0.0% Dodge Journey 4 2 100.0 64 46 39.1 0.1% 0.9% 476 0.6% Mahindra 14 0.0% Jeep Grand Cherokee 3 - 64 39 64.1 www. - 0.0% 6 0.9% 502 0.7% autoport.net 0800 7000 44 MG 0.0% Ssangyong Korando 2 0 200.0 63 36 75.0 20 | www.autofile.co.nz 0.0% 12 0.8% 480 0.6% Chrysler Jeep 0.0% Ford Fiesta YOUR FIRST CHOICE IN SHIPPING1 - 60 85 - 0.0% -29.4 0.8% Mclaren 1 0.0% Bmw 892 1.2% 1 116i 59 0 100.0 0.0% 13 353.8 0.8% Others 6 0.0% Holden 378 0.5% 3 5 Malibu 58 -40.0 0.0% - - 0.8% total 71 0.1% Others 334 0.4% 7453 6484 2254 14.9 100.0% 76062 2130 5.8 30.2% 100.0% total 25936 34.1% 7453 6484 14.9 100.0% 76062 100.0% Seal the deal with UDC. Ph 0800 500 832 or visit www.udc.co.nz Your ﬁ rst choice in UDC Finance Limited lending criteria applies. automotive lending.

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www.autofile.co.nz | 35 disputes

The case: The buyer wanted Tribunal rules some problems found to reject a 13-year-old Primera under the Consumer Guarantees Act (CGA) claiming it was faulty. happened after vehicle was supplied The trader said its unmatched rear shock absorbers weren’t an issue, damage to the radiator tabs had Background after purchase, the Primera began cap use and the engine oil had occurred after the car was sold and Shylah Huisman purchased a 2001 to feel sluggish and was over- been contaminated by coolant. there was no evidence its head gasket had blown. Nissan Primera from Turners Group revving, so Huisman took it to Challenge Longburn added NZ for $3,990 on November 29, 2014. Courtesy Ford. the cylinder head or head gasket, The decision: The tribunal She rejected it on April 1, 2015, after She contacted Autosure and or both probably, had failed. ruled that the vehicle was of claiming it had several faults. the trader paid her excess to have However, removal would be acceptable quality for its age, mileage and price when supplied. She referred to “the likelihood of the transmission’s stepper motor needed to determine the exact future issues with the suspension”, replaced. fault and it estimated the repairs At: The Motor Vehicles Disputes which she believed to constitute a Huisman was concerned about would cost up to $5,000. Tribunal, Palmerston North. failure of substantial character. the vehicle’s reliability and was told Huisman obtained a report on Huisman wanted the tribunal to by a mechanic the rear suspension the engine from a Nissan franchised uphold her rejection and order her was “on its way out”. dealer at the tribunal’s request. either mechanic had done tests to purchase price be refunded. She sought advice from Manawatu Nissan noted the establish a basis for the former’s The trader said the faults were Manawatu Community Law Centre, car had mismatching rear shocks, “experience-founded view” that normal wear-and-tear items any which – in a letter dated April 1 – an after-market radiator had been the head or its gasket – or both reasonable consumer would expect purported to reject the car on the fitted, rubbers were worn but – have failed, or to support the of a car of its age, mileage and price. grounds of the repaired faults and there were no external leaks, the comment on the invoice that the “the likelihood of future issues with cooling system was empty, the head gasket was suspect. The case the suspension”. head gasket was suspect, and the Huisman bought the vehicle after The dealer and Huisman pressurising system and its coolant The finding taking it for a test drive during agreed to have it independently level were low. The tribunal considered the which a friend with mechanical assessed by a mechanic. The trader said the different Primera’s age, mileage and price knowledge looked at it. It was sold On April 10, the Primera was rear shocks didn’t make the vehicle before making its decision. with a new warrant of fitness (WOF) inspected by Palmerston North unsafe and it had passed a WOF. Its assessor said mismatched and had clocked up 171,701km. Automotive, which reported no It added damage to the shock absorbers wouldn’t fail a WOF. She had the car serviced by faults with the suspension arms radiator tabs must have occurred The tribunal did rule, however, Challenge Longburn on December and bushes. after the car was sold because its that there was a fault with the 4 when it had travelled 172,452km. It found the radiator cap was cooling system was inspected by radiator neck due to broken tabs. Its invoice recorded that it checked fitted incorrectly due to broken Challenge Longburn and the AAxxxxxxxxx in As a result, the cooling system xxxxxxxxxxxall fluid levels and conditions, and stop tabs on the filler neck and, as a December. hadn’t been pressurised and added fluid as required. result, the radiator was faulty. If there had been a fault with probably expelled liquid from the Huisman said the engine Huisman claimed thisAnnual report highthe radiator for neck, stockpile it would have top of the radiator causing the Industry manages levels well always been the way. he amount of stock held 1996, it has ebbed and flowed.” units, are more static with their overheated on Decemberdid come 14 down and after the global wasn’tChristchurch are thorough boosting sales. enough and, prevented the cap from being “You can oversupplyengine when to overheat, which possibly tock levels of new cars have that dropped to this year’s low of by used car dealers during Used car stock levels are holding not changing too much. financial crisis [GFC]. “Trades people are upgrading buying conditions are good, but increased every month 18,653 in January. October was the highest traditionally based on what’s A drop of 50 units may not be “Stocking levels then increased their vehicles,” says Crawford. too drastic. But stock can vary the marketplace normally corrects except one this sheyear, with had itDavid inspected Crawford, chief executive by the AA. four days later, she tookTmonthly the total of carthe year. happeningapplied in Japan to and whatpressurise the cooling resulted in damage to the cylinder again and they respond to the “Although passenger cars aren’t so enormously by proportion on yards itself by pulling back from Japan or SOctober’s total of 29,509 being the officer of the Motor Industry There were 10,374 units consumers are buying here. number of new vehicles sold and hot, SUVs are. with 30 to 40 cars. selling down. The numbers might highest of 2013. Association (MIA), says current imported last month with a Conditions there have improved Its mechanic checked thethe rate cooling at which they are sold. to “PeopleChallenge in the housing market Longburn, which system. “They can suddenly be selling drop for a monthhead or two before or head gasket. There were 7,962 sales last models aren’t sitting around in variance of 1,829 on 8,545 sales. recently and the exchange rate “They basically go up when are refinancing their mortgages without having bought for a few trundling up again. month, also this year’s biggest stock for too long. The number of cars in stock has gone up. sales go up, but I’m not so sure to buy big-ticket items especially weeks and being 10-15 units down “There’s no magic supply-chain amount, while the variancesystem was and“The industry topped tends to manage up the coolant carried out an inspectionamounted and to 9,323 compared to “OctoberThe and Novembertrader are said Palmerston However, the tribunal said this about the days stock is held for when they are confident about makes them more susceptible,” miracle. When it’s slow, it tends to be 1,400 with 9,362 units imported – stock levels quite well and does this 7,494 in September. normally difficult for the industry, being longer and can’t explain that. keeping their jobs.” says Macdonald. slow for everybody. If you can get the second highest amountlevel, after butday in,found day out,” he told no Autofile. leaks. found some issues. There have been two other Northso the stockpile Automotive tends to go found no was likely to have occurred after “Average sales per day came All that said, some of the “Dealers then jump online to good supply with a good exchange 11,065 imports in August. “My data suggests this is a major increases during 2013 – with up,” says Macdonald. “But trade The TRUSTED online down during the GFC and before regional centres, such as Hawke’s buy more from Japan, but that’s rate, everyone benefits.” The total stock figure at the cyclical thing and levels were no variances between imports and sales swings up over Christmas and the wholesale trading site. On January 1, the vehiclethat they were began much higher.” Bay andThese Palmerston includedNorth, aren’t different rear- evidence of combustion gases in the vehicle was supplied. end of December was 20,683 and higher in previous years, but they holidays, so it goes down. showing as much growth as of 3,121 in April and 2,507 in May. If 80,000 vehicles are sold one “December and January are autoport.net other centres. Graeme Macdonald, chairman Dealer stock of used car imports in New ZealandOct 2013- to over-rev and surge. Threeyear and 100,000 days are sold the shock absorbers having been thegood months coolant, for sales because which was a sign of a Oct 2013 “But 80 per cent of New Zealand’s of the North Island branch of the AVerAge dAyS Dealer stock of new cars in New Zealand - following year, the average sales USed ImportS 10000 Imported Motor Vehicle Industry people take time off work, the kids Imported VArIANCe StoCk SALeS per StoCk population is in Auckland and 2012 SoLd dAy - ytd At hANd AVerAge dAyS per day should be higher – and are off school and people may have e NeW CArS VArIANCe StoCk SALeS per StoCk Association, says the current t h 2012 Importedlater,S oLHuismand contactedthe theMIA is expecting trader more new fitted,Christchurch. poor performance, worn blown head gasket. 8,579Order t hANd Whangarei Auckland Hamilton cThames dAy - ytd A stockpile should correct itself – as it Christmas bonuses or holiday pay. Total stock at the end of December 2011 o vehicles to be sold this year than “If you add in Dunedin and Taurangad Rotorua Gisborne Napier New 12,984 “It’s a time when Kiwis tend to 3,191 6,375 (3,184) 5,395 206 26 9500 Plymouth MIA stock estimate as at end of December 2011 Wellington, these centres cover a normally does. Jan ‘12 Biggesti ncreases/Decreases about this, which paid theduring excess 2012. bump stops, deteriorated radiator It insisted there was no The 210application 21 to reject was Wanganui Palmerston u 10,511 242 43 “If the monthly stockpile was make financial decisions, so dealers Feb ‘12 4,920 6,000 (1,080) 4,315 n North Masterton Wellington Jan ‘12 5,026 7,499 (2,473) There were 54,404 sales in 2009, large proportion of the population By town year-on-year need to have plenty of stock to 6,429 75 4,390 209 21 Nelson Blenheim Greymouth Whangarei Auckland n 7,368 5,633 1,735 12,246 223 55 10,000 on a regular basis it means Mar ‘12 6,504 Feb ‘12 62,029 in 2010, 64,019 in 2011 and all have strong economies.” 25 u (OctOber 2013 vs OctOber 2012) 218 59 match demand. 6,613 5,877 736 5,126 206 Hamilton Thames Tauranga Rotorua Gisborne Mar ‘12 on 7,228 her 6,499 mechanical 729 12,975 insurance policy mountYear to date, rubbers 77,438 new cars allowingthere excessive are solid holding numbers,” evidence in ChallengeApr ‘12 Longburn’s dismissed because the car was and 76,871 in 2012, and the MIA is 900 6,026 208 29 9000 t 209 66 “When the market’s down in 7,693 6,793 Apr ‘12 6,285 5,430 855 13,830 he told Autofile. “North of that May ‘12 Napier New Plymouth Wanganui Palmerston North Biggest increases predicting about 82,000 passenger have been imported and 68,612 208 33 o 15,630 205 76 Japan, stock is hard to get. When Jun ‘12 6,947 6,184 763 6,789

May ‘12 7,742 5,942 1,800 and we would be looking at an r new have been registered to give a Masterton Wellington Nelson Blenheim Greymouth Used to replace the crank-anglevehicle sensor. and SUV sales this year. movement, the radiator filler neck report of April 14 or on Manawatu 6,641 (1,306) 5,483of acceptable 209 26 quality for its age, 8,870 7,142 1,728 17,358 211 82 oversupply issue. it’s buoyant, you tend to buy what Jul ‘12 5,335

westport  100.0% Blenheim  Jun ‘12 variance of 8,826 so far this year. r Westport Christchurch Timaru Oamaru Dunedin 95.5% “We’re looking at about 30,600 210 21

Invercargill Whangarei Auckland Hamilton Thames light commercials and we’re on 5,506 6,222 (716) 3,686 209 18

napier  34.1% 8,589 Three 5,959 months 2,630 21,674 later207 105 and 6,000km was damaged due to incorrectin March, and we saw high arrival Nissan’swhat will be available invoice next time. asSep ‘12to whether mileage and price when sold. 17% A rotorua  Aug52.0% ‘12 been steadily increasing from 78 in New Passenger Vehicle Sales by Make - 12 Tauranga Rotorua Gisborne Napier New 209 105 track for 112,000 or 113,000 new 5,688 6,867 (1,179) 2,507 211 Plymouth Sep ‘12 6,828 6,637 191 21,865 numbers in April, May and June. “Dealers also need to bear in Oct ‘12 January to 131 in October. November 2013 213 18 211 107 vehicle sales overall.” Nov ‘12 8,486 7,183 1,303 3,810 Wanganui Palmerston North Masterton Biggest decreases Oct ‘12 8,155 7,336 819 22,684 Make “The stockpile occurs more at mind it takes four to six weeks to New Passenger Vehicle Sales by Model - Business confidence being Last year 90,754 units were Nov '13 (705) 3,105 215 14 new Used 6,484 2,469 25,153 212 119 Nov '12 +/- % Novget '13stock from Japan.” Dec ‘12 6,414 7,119 November 2013 8000 Wellington Nelson Blenheim Greymouth Whangarei Nov ‘12 8,953 certain times of the year. Since Mkt Share 2013 total 2013 Mkt w  imported and there were 76,871 Finance anganui 27.7% westport  41.7% 26,867 211 128 high and strong regional Toyota Share Make ytd totalModel 72,837 78,311 (5,474) Auckland Hamilton Thames Tauranga Rotorua Dec ‘12 7,816 6,102 1,714 I came back into the industry in Larger operations, of say 300 Nov '13 Nov '12 Nov Mkt 41% gisborne  26.8% sales for a variance of 13,883. 1746 1190 +/- % 2013 2013 Mkt Masterton  20.0% TWO SAILINGSeconomies in AucklandPER and MONTH JAPAN TO NZ46.7 23.4% Share o 90,754 76,871 13,883 14670 total c timaru  ytd total Holden 19.3% Toyota AVerAge dAShareyS t 3 23.7% timaru  12.4% 685 Corolla USed ImportS 850 wds o 1 673 626 SALeS per StoCk ber 20 1.8 9.2% 8102 2013 Imported 462 VAr35.5IANCe Sto8.4%Ck 7500 AVerAge dAyS Ford Days stock in nZ - UseD import cars 10.7% Toyota SoLd dAy5283 - ytd At 6.9%hANd NeW CArS Ck Days stock in nZ - new cars 618 596 RAV4 Imported VArIANCe StoCk SALeS per Sto 3.7 8.3% 289 80 261.3 2013 SoLd dAy - ytd At hANd 6519 8.6% Total stock at the end of December 2012 31053.9% 2521 3.3% Hyundai 180 572 Holden Commodore PassengeR Vehicle RegistRatiOns 180 LATEST SCHEDULE 624 -8.3 260 0.7 Used Vehicle RegistRatiOns 26,867 7.7% 6695 4,468 7,397171 52.0 (2,929) 3.5% 176 239 New versus used Total stock at the end of December 2012 Mazda 8.8% Mazda Jan ‘13 2399 3.2% North IslaNd versus south IslaNd 160 512 Cx-5 243 6 12% 238 104 160 485 5.6 8,247239 6,922 1,325 1,501 7000 Jan ‘13 5,355 7,385 (2,030) 24,837 6.9% 5447 Feb ‘13 141 69.5 3.2% 2013 10000 Hoegh Xiamen Nissan 7.2% Toyota 1989 243 2.6% 11 7000 223 117 Sepang Express Morning Miracle 140382 yaris 8,852 7,581 1,271 2,772 Feb ‘13 7,027 Port 5,799 Calls 1,228 26,065 Liberty 281 35.9 Mar ‘13 227 140 5.1% 3342 267 -15.0 3.0% 244 24 6740 25,594 222 115V20 Suzuki 4.4% Apr ‘13 10,539 7,418 3,121 5,893 2235 2.9% 9000 Mar ‘13 6,329 6,800 (471) V9 V5 376 Suzuki Swift 6000 2013 V1120 405 -7.2 218 34 216 125 120 5.0% 4436 10,967 254 8,460 -14.2 2,507 8,400 250 Apr ‘13 7,391 5,908 1,483 27,077 Mitsubishi 5.8% May ‘13 2.9% 2750 3.6% Used Ford Payment 2012 Osaka 20 Oct 351 272 Mondeo 227 8,627 252 34 6500 8000 8545 1,082 28,159 214 132 30 Oct 15 Nov 100 29.0 4.7% Jun ‘13 8,089184 7,86298 protection 14% 5000 North Island May ‘13 7,429 6,347 100 29 Nov 3661 4.8% 87.8 2.5% 1201 New Honda Hyundai (1,006) 7,621 261 1.6% 29 7,542 509 28,668 220 130 310 312 Jul ‘13ix35 8,623 9,629

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J Ford Apr Ju S Lyttelton M 82 M A Feb Mar 2013‘13 Oct predicted sales 82,380 16 Nov 29 Nov 56.1 1.7% Focus Jan 11 Dec Peugeot 29 Dec 1398 1.8% 114 212 -46.2 22% 108 1.5% 1429 1.9% 60 80.0 Honda Jazz & 1.4% 1001 1.3% 113 76 8500 Jeep 48.7 1.5% 922 92 65 SPONSORSHIP41.5 OF THE NEW AND USEDFord COMMERCIAL STATISTICS 1.2% 1.2% 775 Kuga 112 Usedi mPORt PassengeR Vehicle RegistR Ssangyong PAGES IS NOW AVAILABLE1.0% FOR YOUR BUSINESS 18 522.2 1.5% atiOns by city for the latest industry news86 49 Mazda 952 1.3% aucklaNd, wellINgtoN, chrIstchurch 75.5 1.2% Mazda3 hamIltoN, tauraNga, duNedIN, PalmerstoN North TARGETED ADVERTISING SPACE Dodge 724 1.0% 109 151 -27.8 PORT TO DOOR SERVICE 64 1.5% 1537 2.0% ConneCt engage4500 8000 4320 46 39.1 Toyota Aurion GENEROUS REWARDS For all enquiries0.9% contact478 Brian 0.6%on 021 455 775 or email brian@autoﬁ le.co.nz107 600 Skoda 23 365.2 1.4% 9% 4000 INCLUDING:SHOULDN’T WE BE LOOKING AT YOUR BUSINESS? 63 56 12.5 Holden 447 0.6% 0.8% 654 Cruze New Passenger registrations - 2012-2013 PROGRAMMELexus 0.9% 106 80 32.5 3500 500 Hamilton 54 1.4% 1925 2.5% 8500  44 22.7 0.7% Hyundai Santa Fe Auckland 7500 MPI Border inspection 508 0.7% 103 www.autofile.co.nz | 27 3000 Land Rover 261 -60.5 1.4% 495 Ship your motor vehicles on 51 22 131.8 1847 2.4% 400 0.7% 443 Honda Civic www.autofile.co.nz 198000 2500  Mini 0.6% 100 115 26 | www.autofile.co.nz -13.0 Insurance Odometer certiﬁ cation Armacup vessels and you 44 43 1.3% 852 1.1% 16% Tauranga 2.3 0.6% Mitsubishi Outlander 2000 300 Chery 474 0.6% 97  34 118 -17.8 1.3% 7500 7000 290 Digital Photography for prior sales in NZ can earn seamiles points for 21 61.9 Hyundai 1258 1.7% 1500 0.5% 351 i30

N ‘13 G ‘13 G 779

‘13 162.5 E Insurance 1.0% b ‘13 b A r ‘13 r A y ‘13 y u 0.3% L ‘13 L EP N u Ford Nov ‘12 Nov ‘13 G

DEC ‘12 DEC F JAN ‘13 JAN 6000 E APr ‘13 APr 98 A J Ju S A Territory M u M A EP Oct ‘13 Oct u 0.1% Nov ‘12 Nov

DEC ‘12 DEC F JAN ‘13 JAN Volvo APr ‘13 APr

Ju S M 83

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www.autofile.co.nz | 35 Brought to you by

t h e Whangareid Auckland Hamiltonc Thameso nTauranga Rotorua Gisborne Napieru uNew Plymouth Wanganui Palmerston North n oMasterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga t r Rotorua Gisborne Napier New Plymouth Wanganui r

A Palmerston North Masterton Wellington Nelson y Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames O c 5 to b er 2 01

New passenger vehicle registrations by city Used import passenger vehicle registrations by city

5000 5,032 6500

4500 6000 4000

3500 5500 5,496

3000 5000 Auckland Auckland 2500

2000 2000 1,860

1500 1750

1000 Christchurch 1500 1,439 Christchurch 900

1000 800 Wellington Vehicles sold Vehicles Vehicles sold Vehicles 941 900 700 800 600 Wellington Hamilton 557 700 500 676 479 600 400 Tauranga Hamilton 500 Tauranga 300 456 400 271 Dunedin 220 200 300 300 Dunedin 185 281 Palmerston North 100 Palmerston North 200

0 0 ‘15 ‘15 ‘15 ‘15 v ‘14 v ‘14 n n n n o o pr ‘15 pr ‘15 ug ‘15 ug ‘15 a a Jul ‘15 Jul ‘15 Oct ‘14 Oct ‘14 Oct Sep ‘14 Sep ‘14 J J Feb ‘15 Feb ‘15 Sep ‘15 Sep ‘15 A A May ‘15 May ‘15 May Dec ‘14 Dec ‘14 Ju Ju N N A A Mar ‘15 Mar ‘15

New and used cars registered in October 2015 by region

WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL

Used cars 235 5,496 676 79 456 116 31 233 182 73 281 64 941 187 54 27 7 1,439 97 19 300 156 11,149

New cars 130 5,032 479 46 271 108 40 146 127 70 185 44 557 86 54 18 3 1,860 50 19 220 89 9,634

Total cars 365 10,528 1,155 125 727 224 71 379 309 143 466 108 1,498 273 108 45 10 3,299 147 38 520 245 20,783

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TWO SAILINGS PER MONTH JAPAN TO NZ

LATEST SCHEDULE Morning Tokyo Car Morning Midas TBA Port Calls Miracle V21 V5 V7 V601 Moji 14 Nov – – – Osaka 15 Nov 2 Dec 16 Dec 2 Jan Nagoya 16 Nov 3 Dec 17 Dec 3 Jan Yokohama 17 Nov 4 Dec 18 Dec 4 Jan Auckland 3 Dec 19 Dec 4 Jan 20 Jan Wellington 7 Dec 26 Dec 7 Jan 7 Feb Lyttelton 6 Dec 26 Dec 6 Jan 5 Feb

YOUR FIRST CHOICE IN SHIPPING

Phone 0800 ARMACUP (276 2287) email [email protected] www.armacup.comwww.autofile.co.nz 21 www.heiwa-auto.co.nz Trader changes business model

used car importer in than we were in terms of replacing Tiida. He adds: “We deal in a few came second overall on the ladder. Auckland is shifting the some of our stock. European cars, but that is more Used imports from the US emphasis of his dealership “I would normally have just out of interest rather than as a broke into three figures for the Ato overcome issues with accessing flicked these off to a wholesaler, business model.” second time in 2015 on 101, but vehicles from Japan. but I’m keeping hold of them for As for the overall numbers, behind 121 in March. Glenn Hall, of Croydon on-selling. the total for used passenger Singapore came third with 60 Wholesalers in Henderson, says the “If – as dealers – we start vehicles entering New Zealand units for its joint-second highest drop-off in demand for vehicles doing the numbers again to during October came to 12,388 – total of this year, while the across the Japanese market is increase stock, it’s not going to significantly up on September by amount from the UK slumped to affecting what he can source for his be helpful in as much as that 3,705 units for the fifth biggest its lowest of 2015 on 56. customers in New Zealand. the margins just aren’t going to month of 2015. Meanwhile, used light “If people are not buying be there. There is a cap on what There were 11,741 used cars commercials notched up their new in Japan, then they are not anything is really worth. imported from Japan last month to third best figures for the year trading old vehicles so auctions “Even with a seasonal increase bring that country’s year-to-date with 576 crossing our wharves are therefore smaller, which forces in foot traffic and if we increase total to 117,436 while the overall in October to bring the total to a lot of competition,” he told stock numbers, it’s still going to be aggregate for this year from all 5,135 for far in 2015. Autofile. reasonably tough trading.” countries comes in at 123,764 units. The vast majority – 538 – came “We are now more inclined to Hall’s most popular cars are Australia had its fifth lowest in from Japan while 23 were sell good quality trade-ins more the Suzuki Swift and Nissan month of 2015 with 412 units, but still sourced from Australia. Us ored imp t passenger vehicle arrivals

16000 15000 14000 13000 12000 11000 10000 2015

9000 2014 8000 7000 6000 5000 2013 4000

3000 2012 JAN FEB MAR APR MAY JUN JUL Aug Sept Oct Nov Dec

Used Import Passenger Vehicles By Country Of Export

2014 2013 Country of Export 2015 Jan ’15 Feb ’15 Mar ’15 Apr ’15 May ’15 Jun ’15 JuL ’15 Aug ’15 Sep ’15 Oct ’15 Oct Share % 2015 Total 2014 TOTAL 2013 total Australia 258 407 414 359 424 449 476 409 378 412 3.3% 3,986 3,167 1,990 Great Britain 110 87 86 71 73 108 66 64 65 56 0.5% 786 1,885 2,908 Japan 9,635 9,357 14,301 15,554 13,892 12,148 11,221 11,512 8,075 11,741 94.8% 117,436 130,770 100,784 Singapore 30 30 17 48 55 57 77 45 60 60 0.5% 479 252 146 Usa 80 58 121 92 77 77 92 83 87 101 0.8% 868 1,278 1,205 Other countries 26 24 25 31 10 25 12 20 18 18 0.1% 209 286 251 Total 10,139 9,963 14,964 16,155 14,531 12,864 11,944 12,133 8,683 12,388 100.0% 123,764 137,638 107,284 PEACE OF MIND www.heiwa-auto.co.nz Ramp inspection before shipping

contact: Kei Mikuriya [email protected]

22.autofile www.co.nz Proud to sponsor the SecondHand Car Sales Statistics Utes provide more versatility ransactions by traders per cent jump from 182 to 206. keep one of each model in stock. during October were seen in during October were a Michael Meyer is the dealer “The Mazda 2 and 3 are flying, Oamaru and Greymouth. They mixed bag compared to principal of Autohaus Rotorua, and always CX-3s when we can fell by 28.9 per cent from 83 to 59 theT same month of last year. which holds franchises for Ford get our hands on them. in Oamaru and by 17.8 per cent There were 18,062 dealer-to- and Mazda but also sources used “We are seeing a lot more from 107 to 88 in Greymouth. public sales last month for a 0.9 per imports from Japan. people from the private Oamaru also recorded the cent increase on the same month “In general, we get a good passenger vehicle sector buying steepest decline – of 66.7 per of 2014 when there were 17,904. vibe from private customers,” he utility vehicles as alternatives for cent, from 24 to eight – when Trade-ins, on the other hand, told Autofile. SUVs as they have become more it came to public-to-dealer decreased by 5.2 per cent from “On the whole, trade is versatile. transactions. The second biggest 13,282 to 12,594, while public-to- looking a lot better than it was “We stock our yard from decrease – from 822 to 608 or public transactions increased by 12 months ago particularly with trade-ins and the odd buy-in. by 26 per cent – was recorded in 3.2 per cent to 41,800 from 40,495. passenger car sales. Obviously, The private sector is selling a lot, Palmerston North. The largest comparative the performance of Ford’s Ranger which we in the industry know is The biggest rise in trade-ins increase in sales by dealers in is self-explanatory. not always for the best because was in Wanganui where they October was recorded in Rotorua, “We typically have about 60 they are getting it cheaper but went up from 109 to 149 or by where they went up by 19.1 units on the yard. We have a lot of buying at full risk.” 36.7 per cent. Blenheim came per cent from 267 to 318, while utes and that is to meet demand. The two biggest drops in second – up by 29.2 per cent from Wanganui came second with a 13.2 Within reason, we are trying to trader-to-public registrations 106 to 137.

Secondhand car sales - October 2015

Dealer-To-Public Public-To-Public Public-To-Dealer Oct '15 Oct '14 +/- % MARKET SHARE Oct '15 Oct '14 +/- % Oct '15 Oct '14 +/- % Whangarei 560 564 -0.7 3.10 1,840 1,838 0.1 216 256 -15.6 Auckland 6,484 5,891 10.1 35.90 14,750 14,181 4.0 4,720 4,745 -0.5 Hamilton 1,469 1,453 1.1 8.13 3,269 3,069 6.5 1,152 1,207 -4.6 Thames 233 231 0.9 1.29 590 525 12.4 80 103 -22.3 Tauranga 995 945 5.3 5.51 2,045 2,035 0.5 592 607 -2.5 Rotorua 318 267 19.1 1.76 834 680 22.6 97 129 -24.8 Gisborne 160 160 0.0 0.89 384 362 6.1 112 97 15.5 Napier 550 587 -6.3 3.05 1,350 1,304 3.5 380 428 -11.2 New Plymouth 389 422 -7.8 2.15 954 1,029 -7.3 214 237 -9.7 Wanganui 206 182 13.2 1.14 527 398 32.4 149 109 36.7 Palmerston North 716 797 -10.2 3.96 1,635 1,630 0.3 608 822 -26.0 Masterton 154 181 -14.9 0.85 395 330 19.7 90 90 0.0 Wellington 1,527 1,613 -5.3 8.45 2,906 2,761 5.3 1,131 1,174 -3.7 Nelson 343 349 -1.7 1.90 915 983 -6.9 235 241 -2.5 Blenheim 189 217 -12.9 1.05 416 383 8.6 137 106 29.2 Greymouth 88 107 -17.8 0.49 173 218 -20.6 35 44 -20.5 Westport 26 27 -3.7 0.14 98 104 -5.8 0 0 0.0 Christchurch 2,302 2,399 -4.0 12.74 5,170 5,271 -1.9 1,755 1,854 -5.3 Timaru 249 238 4.6 1.38 522 513 1.8 136 150 -9.3 Oamaru 59 83 -28.9 0.33 164 220 -25.5 8 24 -66.7 Dunedin 657 781 -15.9 3.64 1,878 1,774 5.9 439 563 -22.0 Invercargill 388 410 -5.4 2.15 985 887 11.0 308 296 4.1 NZ total 18,062 17,904 0.9 100.00 41,800 40,495 3.2 12,594 13,282 -5.2

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www.autofile.co.nz 23 new cars

Passenger Car and SUV Sales by Private/Business split

Make Private % Private Business % Business Total Emissions scandal to Alfa Romeo 6 60.0 4 40.0 10 Aston Martin 1 33.3 2 66.7 3 Audi 27 22.3 94 77.7 121 ‘test loyalty’ of buyers Bentley 1 50.0 1 50.0 2 olkswagen is hoping marque is working with the NZTA to BMW 58 31.7 125 68.3 183 its customers in New identify affected used imports. Chery 14 100.0 0 0.0 14 Zealand will stick with the The scandal has hit the Vmarque in the wake of the global Volkswagen Group’s sales globally Chrysler 1 14.3 6 85.7 7 emissions-testing scandal affecting with its bid to take the worldwide Citroen 17 85.0 3 15.0 20 around 11 million vehicles with crown off Toyota seemingly Dodge 16 40.0 24 60.0 40 diesel engines. doomed and insignificant in Fiat 58 59.8 39 40.2 97 Its parent company in relation to its emissions cheating. Ford 176 29.7 417 70.3 593 Germany recently admitted to Sales of new Volkswagen “data inconsistencies” for carbon- passenger vehicles in this country Holden 199 20.1 793 79.9 992 dioxide emissions for 800,000 took a hit in October with the total Honda 219 77.1 65 22.9 284 more cars – a total that has since coming in at 252. This was down by Hyundai 166 24.2 521 75.8 687 risen to about 1.23 million and 17.6 per cent compared to 307 in Isuzu 4 22.2 14 77.8 18 includes some petrol models. the same month of 2015. Jaguar 4 50.0 4 50.0 8 On top of that, US authorities Of those 252 units, 43.3 per suspect diesel powertrains in some Jeep 34 21.3 126 78.8 160 cent – or 109 – were sold to Porsches and Audis have also been private buyers. Out of all marques Kia 150 56.8 114 43.2 264 designed to cheat emissions tests. selling more than 100 units, Land Rover 38 49.4 39 50.6 77 Owners of affected vehicles Volkswagen had the sixth-highest Lexus 10 20.0 40 80.0 50 in this country were emailed at proportion of registrations to McLaren 1 100.0 0 0.0 1 the start of November to update members of the public. Maserati 2 28.6 5 71.4 7 them on the parent company In September, when the emissions establishing what will be involved scandal broke, it sold 314 units – Mazda 323 35.7 582 64.3 905 in rectifying affected models. down by four per cent compared to Mercedes-Benz 55 30.6 125 69.4 180 “The first priority is getting the the same month in 2014. MG 1 100.0 0 0.0 1 situation fixed for customers,” says Volkswagen’s year-to-date Mini 17 29.3 41 70.7 58 Tom Ruddenklau, general manager total is 3,271 new passenger Mitsubishi 208 57.0 157 43.0 365 of Volkswagen NZ. vehicles compared to 3,408 by the Once the Volkswagen Group in corresponding period last year. Nissan 139 35.2 256 64.8 395 Germany decides on the solution Meanwhile, Audi sold 121 cars Peugeot 21 26.6 58 73.4 79 and how it will be rolled out, Kiwis last month with 27, or 22.3 per Porsche 19 67.9 9 32.1 28 will be told what steps will be taken. cent, being private transactions. Renault 1 7.1 13 92.9 14 Ruddenklau adds the company The marque is less affected Skoda 18 19.4 75 80.6 93 is doing its best to keep in constant by the global Volkswagen Group contact with owners. “It will be a scandal, but its total for October SsangYong 53 23.5 173 76.5 226 test of how we value our customers was down by 30.1 per cent Subaru 98 51.6 92 48.4 190 and their subsequent loyalty or compared to 173 registrations by Suzuki 248 61.8 153 38.2 401 otherwise.” this time last year. Toyota 241 8.8 2,498 91.2 2,739 When Autofile went to print, Mercedes-Benz is leading 2015’s Volkswagen 109 43.3 143 56.7 252 there was no update on whether the ladder for prestige marques on number of affected cars sold new 1,728 units. BMW, which took out Volvo 11 26.8 30 73.2 41 in this country has grown from the the title in 2014, is second on 1,637, Total 2,764 28.8 6,841 71.2 9,605

*Business sales include rental and government sales, and the totals include passenger cars and SUVs. SOURCE: MIA SOURCE: and the totals include passenger cars SUVs. *Business sales include rental and government sales, 5,548 already identified, while the while Audi is third on 1,576.

From the rising sun to the long white cloud The history of used car importing to New Zealand

24.autofile www.co.nz new vehicles M ixed fortunes across market he chairman of the successful although its products have areas performed well, while the past Kenworth and DAF met customer Colonial Motor Company “good potential” to increase sales. financial year was “more normal – a expectations in terms of price, has highlighted Mazda as “Ford will close Falcon mix of good and not so good”. features and emissions. beingT a high-performing marque production in 12 months,” adds “Our car dealerships have had “Tractors ran into the expected over the past financial year. Gibbons. “This would have been to contend with a more difficult downturn flowing from the lower Jim Gibbons says the CX-3 has a major issue in past years, but in environment,” he explains. dairy pay-out.” “defined the new class of smaller today’s market it is not. “National numbers of new car As for the wider picture, overall SUVs – think of a Mazda 2 configured “The market for large rear-drive and light commercial registrations sales of new vehicles in New as a sporty SUV”, while the Mazda sedans, outside of performance grew driven by rentals, which do not Zealand last month rose by 5.6 per 3 and CX-5 are in the New Zealand vehicles, is now small. generate margin to our dealerships. cent compared to October 2014 industry’s top 10 by sales volume. “The Falcon now sells about 50 “That extra bit of fizz from fresh, and are delivering steady year-to- He points out Ford has notched units per month compared to an new and desirable product was date growth of 5.4 per cent. up significant success with its average of 550 Rangers. It’s the end missing. Sales were achieved, but So far in 2015, 112,217 new Ranger, which is the country’s best- of an era, not the future.” at higher cost. vehicles have been registered in selling new vehicle so far in 2015. On the overall market, Gibbons “The heavy-truck industry was this country compared to 106,422 However, the blue oval’s says the 12 months to June 2014 driven by attractive exchange by this time last year – up by passenger car range has been less were unusual for Colonial in that all rates. Within this rising market, 5,795 units.

NEW VEHICLE SALES BY BUYER TYPE - October 2015 NEW VEHICLE MARKET SEGMENTATION - October 2015

Oct '15 Oct '14 Mth % 2015 YTD 2014 YTD % YTD Oct '15 Oct '14 Mth% diff 2015 YTD 2014 YTD % YTD Passenger 5,250 5,683 -7.6 41,382 43,681 -5.3 Passenger 5,250 5,683 -7.6 41,382 43,681 -5.3 Private 1,384 1,563 -11.5 15,497 16,048 -3.4 SUV 4,355 3,178 37.0 37,961 31,692 19.8 Business 1,572 1,952 -19.5 17,611 19,713 -10.7 Light Commercial 2,550 2,589 -1.5 28,094 26,370 6.5 Gov’t 138 177 -22.0 1,931 2,065 -6.5 Heavy Commercial 414 447 -7.4 4,007 4,170 -3.9 Rental 2,156 1,991 8.3 6,343 5,855 8.3 Other 115 111 3.6 773 509 51.9 Total market 12,684 12,008 5.6 112,217 106,422 5.4 SUV 4,355 3,178 37.0 37,961 31,692 19.8 Private 1,380 1,145 20.5 14,540 12,451 16.8 Micro 148 154 -3.9 1,524 1,548 -1.6 Business 1,636 1,469 11.4 17,192 15,966 7.7 Light 1,326 1,586 -16.4 12,314 11,881 3.6 Gov’t 66 63 4.8 626 630 -0.6 Small 2,513 2,771 -9.3 16,388 19,032 -13.9 Rental 1,273 501 154.1 5,603 2,645 111.8 Medium 699 574 21.8 5,982 5,732 4.4 Large 385 399 -3.5 3,631 3,820 -4.9 Light Commercial 2,550 2,589 -1.5 28,094 26,370 6.5 Upper Large 16 32 -50.0 198 271 -26.9 Private 679 546 24.4 7,040 6,163 14.2 People Movers 78 84 -7.1 489 510 -4.1 Business 1,693 1,802 -6.0 18,937 18,452 2.6 Sports 85 83 2.4 856 887 -3.5 Gov’t 94 132 -28.8 1,126 1,148 -1.9 SUV Small 1,277 926 37.9 11,316 8,743 29.4 Rental 84 109 -22.9 991 607 63.3 SUV Medium 1,554 1,225 26.9 13,660 11,733 16.4 Sub Total 12,155 11,450 6.2 107,437 101,743 5.6 SUV Large 1,464 996 47.0 12,615 10,822 16.6 Private 3,443 3,254 5.8 37,077 34,662 7.0 SUV Upper Large 60 31 93.5 370 394 -6.1 Business 4,901 5,223 -6.2 53,740 54,131 -0.7 Light Buses 50 58 -13.8 665 507 31.2 Gov’t 298 372 -19.9 3,683 3,843 -4.2 Vans 405 418 -3.1 4,257 4,750 -10.4 Rental 3,513 2,601 35.1 12,937 9,107 42.1 Pick Up/Chassis Cab 4x2 800 804 -0.5 8,716 8,135 7.1 Pick Up/Chassis Cab 4x4 1,295 1,309 -1.1 14,456 12,978 11.4 Heavy Commercial 414 447 -7.4 4,007 4,170 -3.9 Heavy Commercial 414 447 -7.4 4,007 4,170 -3.9 Other 115 111 3.6 773 509 51.9 Other 115 111 3.6 773 509 51.9 Total 12,684 12,008 5.6 112,217 106,422 5.4 Total market 12,684 12,008 5.6 112,217 106,422 5.4

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www.autofile.co.nz 25 Colour important as supply frees up

dealership reports issues colour is one of the factors for and Sportage are also performing crossing the border in October securing cars in consumers’ buyers,” says Murdoch. “People are well for us.” climbed by 271 units, or by 3.3 per preferred colours while much more particular about the Matt Carman, chief executive cent, from 8,352 to 8,623 over the constrainedA supply around certain colour of a new car than a used one. officer and dealer principal of Capital same timescale. models has improved. “What sells in new doesn’t City Motors, says: “Our demographics This created a national stock Gavin Murdoch, branch necessarily sell well when it comes show interest in small cars and any figure of 55,255 after sales manager of Counties Manukau to second-hand. Red and blue, for small to medium-sized SUVs. outstripped imports by 1,011 Toyota in Pukekohe, reports good example, sell better in new than “Newer cars selling units last month. sales of new vehicles. used. Black is still very popular too.” predominantly for us include Ford’s Stock levels in October dropped “Stock is moving well right Murdoch adds: “Highlander Fiesta and Focus, and the Mazda by 1.8 per cent when compared to across the range, including the stock has freed up. The all-wheel- 2 or 3 – those types of vehicles, the previous month. However, the Corolla, RAV4, Prius and Yaris, so drive RAV4 is a little bit tight, but especially here in Wellington.” level of unsold stock has gone up we aren’t pigeon-holed into one we are due for a model facelift.” Vern Walker, dealer principal by 7,012 units – or by 14.5 per cent vehicle,” he told Autofile. Mike Eastwood, dealer principal of Nelson Bays Motor Group, – over the past 12 months. “We are fortunate in that we of Eastwood Motor Group in reports “quite a tough time” when Daily sales last month – when can sell across the board rather Masterton, says: “We’re not having it came to sales a few months ago, averaged out over the previous 12 than relying on just one sector – too many issues keeping up with but “having said that and – as months – came in at 260 compared for example, commercials. Sales buyer demand and there is also far as new cars go – we are not to 245 in the same month of 2014 figures have also been backed by good networking among dealers. experiencing stock issues”. meaning 15 more cars being sold great finance deals on offer.” “Kia is selling well. Its vehicles October was the best on record each day for a jump of 6.12 per cent. He notes, however, that stock can have the same powertrains as for sales of new passenger vehicles There have been 84,421 new run low when it comes to meeting Hyundai, which is great for servicing with 9,634 registrations. This was cars imported so far in 2015 – up some customers’ requirements, such because the components are similar. up from September’s total of 8,835 by 3.9 per cent since October 2014 as their colour choices for vehicles. “The Sorento SUV is the most – an increase of 1,299 units or by – while 8.1 per cent more have “Not all of the models we would popular model in used that we nine per cent. been registered for a year-to-date normally stock are available and have sold, while the Rio, Cerato The number of new cars total of 79,872.

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 October 2014 — October 2015 Oct ‘14 8,297 8,910 (613) 48,243 245 197 180 Nov ‘14 9,075 8,063 1,012 49,255 247 199 160 Dec ‘14 8,248 6,797 1,451 50,706 248 204 Jan ‘15 6,713 9,010 (2,297) 48,409 250 193 140 October 2013 — October 2014 Feb ‘15 7,172 7,057 115 48,524 252 193

Mar ‘15 7,569 8,075 (506) 48,018 252 191 120 Apr ‘15 7,746 6,373 1,373 49,391 252 196 May ‘15 9,395 6,843 2,552 51,943 253 206 100

Jun ‘15 8,297 9,021 -724 51,219 254 202 of stock Days 80 Jul ‘15 8,842 7,272 1,570 52,789 254 207 Aug ‘15 11,712 7,752 3,960 56,749 256 221 60 Sept ‘15 8,352 8,835 (483) 56,266 258 218

Oct ‘15 8,623 9,634 (1,011) 55,255 260 213 40 Year to date 84,421 79,872 4,549 20 t L c v g o e u eb ay ar u Change on Oct 2014 3.9% 8.1% 14.5% un Oct ep J F N Oct APR D JAN J A M M MORE IMPORTED MORE SOLD MORE STOCK S

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26.autofile www.co.nz Colour important as supply frees up B umper month for used imports he difference between the 51 more registrations per day in at the current exchange rate. Matt Carman, of Capital City number of used passenger comparison for a jump of 14.9 per He adds the decline in sales of Motors in Wellington, says there vehicles registered for the cent, while the number of days’ new vehicles in Japan is affecting was probably an oversupply of firstT time in New Zealand and those stock in hand has risen by four units what he can source for buyers in imports in September and “that imported was turned on its head in to 58 over the same timescale. this country. might have been intensified by October compared to September. Year-to-date imports of used Generally, used car importers people getting in before the A total of 12,388 units came into passenger vehicles totalled 123,781 are expecting an improvement exchange rate worsens”. the country last month compared by the end of October with first- as the summer arrives with some He describes keeping up with to 8,683 in September, while sales time registrations coming in at sourcing supply as more trade-ins the demand for quality used cars amounted to 11,149 and 11,667 119,312 for a variance of 4,469 in come onto the market off the back as challenging, while the change respectively. favour of imports. of high sales of new vehicles. in taste towards bigger vehicles – This meant there were 3,705 So far in 2015, 2.1 per cent fewer Some relief is expected when such as Ford’s Kuga – is becoming more second-hand cars imported used cars have been imported and it comes to the supply of used more common. in October and 518 fewer sold to 0.4 per cent more have been sold cars with the age of trade-ins also “These tend to go pretty increase national stock levels to compared to the same time last year. making attractive purchasing for quickly,” says Carman. “It kind of 22,932 units. Some dealers contacted by buyers. mirrors the demand for new cars, The level of unsold stock has Autofile are reporting consistent “The challenge for yards at the which seems to be focused on any increased by 4,573 units – or sales despite the cross-rate moment is getting good quality medium-sized SUV.” by 24.9 per cent – over the past between the yen and New stock, not just rats and mice,” says “It’s definitely harder to buy 12 months. In October 2014, Zealand dollar still impacting on Ryan Durry, managing director of used vehicle stock and good- unregistered stock came in at ability to access good used stock Quay Cars in Nelson. quality second-hand cars,” says Vern 18,359 used passenger vehicles. from Japan. He recently had two cars on Walker, dealer principal of Nelson Looking at the same period, Glenn Hall, of Croydon Motors the water, but 70 per cent of his Bays Motor Group. average daily sales increased from 342 in Auckland, notes while used stock stock comes from local yards, “so “Most people come onto the in October 2014 to 393 last month. is hard to obtain from there at the I’m lucky to be able to keep my yard with a particular model in This means there have been moment, he is not keen to buy in business replenished in that way”. mind rather than price range.”

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 Oct ‘14 12,650 11,105 1,545 18,359 342 54 Nov ‘14 11,284 11,532 -248 18,111 348 52 140 Dec ‘14 12,800 12,448 352 18,463 356 52 Jan ‘15 10,139 11,791 -1,652 16,811 362 46 120 Feb ‘15 9,963 10,572 -609 16,202 366 44

100 Mar ‘15 14,964 12,313 2,651 18,853 372 51 Apr ‘15 16,155 11,038 5,117 23,970 376 64 80 May ‘15 14,531 12,415 2,116 26,086 379 69 October 2014 — October 2015

Days of stock Days Jun ‘15 12,864 12,415 449 26,535 384 69 60 Jul ‘15 11,961 13,891 -1,930 24,605 389 63 Aug ‘15 12,133 12,061 72 24,677 391 63 40 Sept ‘15 8,683 11,667 -2,984 21,693 392 55 October 2013 — October 2014 20 Oct ‘15 12,388 11,149 1,239 22,932 393 58 Year to date 123,781 119,312 4,469 0 t L c v g o e u eb ay ar u un Change on Oct 2014 -2.1% 0.4% 24.9% Oct ep J F N Oct APR D JAN J A M M S Less IMPORTED MORE SOLD MORE STOCK

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www.autofile.co.nz 27 GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE SERIOUS ABOUT GIvInG

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