THE NEW ZEALAND VEHICLE DEALER’S NEWS SOURCE AUGUST 2021 .CO.NZ (L) RICK ARMSTRONG (R) TROY KENNEDY KENNEDY TAKES THE WHEEL AT ARMSTRONG'S P.08 Page 03 MechanicalMechanical Breakdown InsuranceInsurance Payment Protection Insurance Guaranteed Asset Protection Insurance ‘TRUNCATED’ CLEAN Loan Equity Insurance Payment Protection Insurance CAR LEGISLATION Motor Vehicle Insurance Car Insurance www.autosure.co.nz PROCESS www.autosure.co.nz | 0800 267 873 Page 07 The market leader for over a decade. SAFETY RATING LABEL Shift to the Autohub Team and experience the Autohub difference. LAUNCHED FOR GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co TRADERS 1 New Zealand AUGUST 2021 EDITORIALTALK THIS IS RICHARD EDWARDS CRAZY! MANAGING EDITOR ell, who would have vehicle deliveries. Toyota New Zealand thought this time last year now has an average 16 week wait for W that we would end up with delivery. a market like the one we have now. Companies with electric vehicles in New and used registrations are up stock have had massive months, across the board, and electric vehicle setting new records for the segment. sales are at all-time records. The Greens jumped on social media Generally, when talking to dealers to laud the result and seem to about how things are selling there’s expect it to continue at the same a groan, sigh, and a “not bad, could level. be better”. It was pointed out to me that what Not lately. Now it’s '”wow, we’re so had probably happened was that busy”; “where can I get more stock”?, six months of stock was sold in one and generally complaints about the month, a view that was confirmed by Government. another brand. Some are so busy they’re at the point In my 21-years around the trade, I of breaking. One floated the idea to have never seen a time like this. Will me that they were thinking of closing it last forever? Heck no. the gates for a week to catch up on Will it last for long? Probably not. deliveries. The key thing for dealers is looking A used import operation used to forward. Just because selling and hand over the keys the same or next marketing is arguably one of the day: buyers are now waiting a week easier parts of the business right now to take possession. – versus sourcing and delivering – Another prominent new vehicle doesn’t mean it will always be like franchise manager posted a meme that. on LinkedIn celebrating “that feeling Don’t forget the fundamentals of when the right stock arrives on time”. the dealer business, listen to your Cars are in that short supply. suppliers and partners, and don't Speaking of supply, multiple brands ignore the service business and now have notices on their websites – long-time customers as you work to a pop-up you need to get past to see keep up. the website in the case of Mitsubishi Next year could be totally different. New Zealand – explaining delays in RichardMANAGING Edwards EDITOR 2 New Zealand AUGUST 2021 NEWSTALK CLEAN CAR LEGISLATION PROCESS TO BE 'TRUNCATED' MICHAEL WOOD DAVID CRAWFORD he process of legislating for be consulted on) for the full feebate the Clean Car Discount is set to scheme to come into effect." Tbe shortened according to the "My view is I will be very surprised if minister of transport. the January date is reached." The changes required for the He is concerned the important GREIG EPPS DAVID VINSEN penalties need to be in place by legislation could be rushed. January 1, 2022, though normally “Legislation on the run is legislation "Yes, we are seeing the outcome of such a process takes six months. underdone”. speed now. As with most complex Minister Michael Wood says it will matters, the devil is on the detail. "The policy on the Clean Car Discount make it across the line in time - but Detail takes time to unravel and work was not fully fleshed out when it was with a caveat. through. One example of complexity announced. For example, the Climate “Legislation will be introduced soon that was not, in our view, adequately Change Commission heard MTA and – passed and enacted before January sorted out is the linkage between others in the industry say that EV 1, 2022," Wood says. "There will be a WLTP testing and Euro 6d." supply was a risk and so it identified petrol hybrids as an important truncated process but there still be an "In the cabinet paper they had transition vehicle. However, hybrids opportunity for people to have their recommendations that new vehicles were not included in the early say on the Bill.” should be tested using the WLTP test discount implementation along with "There will be an opportunity for protocol from Jan 2022, and that EVs and PHEVs. No inquiry had been people to submit to the Select Euro 6 be adopted in 2022. But it made about what impact the discount Committee on it, but it won’t be the is not that simple. Euro 5 and Euro might have on vehicle finance usual six month process." 6b use the NEDC testing protocol arrangements. What else might be for exhaust emissions and fuel Pushing the legislation through under missed?" urgency is not planned at this stage consumption. It is Euro 6d that uses "If the scheme is passed under according to Wood. the WLTP testing protocol." urgency, then the risk of error is "It seems there was poor Urgency, which could further curtail heightened. By the time it reaches the understanding of the linkages debate, isn’t planned at this stage. House as a draft law, the chance for between WLTP testing protocols and Motor Industry Association chief consultation with industry and the the various Euro emission standards. executive David Crawford understands public has gone and the window for There was also a poor understanding the submission process will be picking up mistakes has closed." of how the NZ market works. In effect condensed to 10 weeks, which is "too there is not one, it is an Australian VIA chief executive David Vinsen short". or Australasian market. So unless believes the process will make the "Our understanding is that Cabinet Australia adopts Euro 6d, New Zealand January 1 deadline. is likely to consider the legislation can’t get the bulk (over 90% of "Yes, but it will be rushed." Cabinet paper this week and if so, current models) tested using the WLTP He suggests this is exacerbated by a agree to the Bill being introduced testing process. Nor can we get the 'lack of expertise' at the ministry - by the end of the month," Crawford bulk of our vehicles built to Euro 6d though the emissions group of the says. "We are hearing that once standards." government body is advertising for it is at select committee there is Greig Epps, advocacy and strategy additional resource in this area now. likely to be a period of 10 weeks manager for the Motor Trade for submissions before it is referred "There is a decided lack of expertise, Association is also concerned at the back to the House. experience and knowledge at the compressed schedule. Ministry; conversely, NZTA has a "Regulations will also be required, "With a majority in the House, it team of good people working on not for rebates, but for fees and should not be a problem for the implementation of CCS." penalties. So they need to get the legislation to be passed. However, Bill into the house and passed, plus around the office we have a saying: write regulations (which also need to AUGUST 2021 New Zealand 3 NEWSTALK FINANCE INDUSTRY NOT CONSULTED AHEAD OF CLEAN CAR ANNOUNCEMENT he finance industry will carry a He says it’s likely that financiers will significant part of the burden be forced to cover penalties, which in Tof the Government's Clean Car some cases could be in the thousands regulations but so far has been largely of dollars, as part of lending. left out of consultation. "As an industry do we have much of The industry is working hard on a choice? If finance companies decide changes triggered by the Credit we’re not going to fund penalties, Contracts and Consumer Finance Act firstly it would bring the used import and is now contemplating what the market to its knees, but it would Clean Car Discount and Clean Car also disproportionately affect the Standard will mean for it. people that need to buy lower-priced How is it affected? There are questions vehicles." around how the rebate is treated and The other issue is the rebate. Though collected on financed vehicles, and also customers can receive a rebate direct, GLENN TODD expectations that financiers will need it’s questionable whether this could to finance fees under both schemes be taken into account in affordability when they come into play. calculations. Both raise questions around "The flaw in it is the rebate has affordability, a critical issue under the no option but to go back to the CCCFA, and the potential for financiers purchaser," says Stephenson. to be left with customers significantly “We could factor that into the “underwater” on vehicles as soon as contract, but I can tell you from they drive off a dealer’s lot. experience that there are people with CFS Finance chief executive Chris all the good will won’t be able to do Stephenson says a lack of consultation that and we will end up having to is concerning. restructure their deal. "I think any time that they don’t "The rebate was supposed to make cars bother to engage with industry there more affordable.