PDF

The voice of the auto industry
Issue 20
10 November 2011
Day of reckoning will come - Davis
T
oyota New Zealand Chief
Executive Officer Alistair
Davis says that the days of
the ‘bulge’ of old vehicles in the
New Zealand fleet are numbered,
and a “day of reckoning will come”.
Davis told Autofile that the
biggest issue for New Zealand’s
fleet size and structure is that
the most common age of cars is
about 15 years old.
New Zealand has one of the
oldest fleets in the developed world.
“In five year’s time will those
people really be able to keep
those cars on the road in terms
of warrants of fitness? – probably
not,” says Davis.
Consumers will be staring
down the barrel of a $500
mechanic’s bill for the vehicle to
pass its Warrant of Fitness, while
the car will only be worth $1000.
“Which means that we’re
going to have to get more cars in
somehow whether it’s new cars
or used imports – New Zealand
will need a fairly substantial
increase in replacement for those
older cars.”
Import patterns means
New Zealand has a massive
concentration of vehicles in our
fleet that were manufactured in
199-95-97, with 21% of the vehicles
on our roads being manufactured
in one of those years.
Our fleet’s age profile doesn’t
fit the theoretical profile of a
developed country.
Instead a perfect storm – a
virgin Japanese used vehicle
market, favourable exchange
rates and easy finance – resulted
in a huge boom of used imports
in the mid ’00s.
Furthermore the introduction
of frontal impact standards saw
a massive spike of ’96 vehicles
imported in 2003.
However one factor for the
Cheapies thrive in slow retail market
E
llerslie Car Fair in Auckland
has always catered to two
types of seller, and with
segregated areas for the two
brackets it’s not complicated - cars
that are above $5000 and those
that are below.
Sellers in the above $5k
category are a mix of dealers and
private sellers, with cars that are
generally tidy.
Those below are priced
anywhere from $950 for a 1985
Corolla to $3400 for a 1996 BMW
318. Head down on a Sunday and
it’s in the cheaper section where
there’s a sense of competition, with
buyers jostling for perceived value.
Auckland dealer Sel Jones says
the activity in the more respectable
part of the Fair is muted.
The buyers who aren’t in the
market are well-to-do parents
buying their children cars as they
average consumer is that many
of these vehicles continue to
run, and Davis concedes that the
reliability of the vehicles in that
age group is unprecedented.
“They’re exceptionally good
vehicles. The majority of course
are from Japan, and if you think
in terms of the Japan car industry
those cars were all designed in
the Japanese bubble economy
of the 1980s, and so they
engineered phenomenally good
quality into those cars.
“Not just Toyota – everybody
built fabulous cars for their time
[continued on page 22]
Regional Report:
head off to university he says,
those who previously would have
thought nothing of buying a car for
their kids once they finished school.
And the best indication of
activity, the booth offering changeof-ownership, is virtually deserted.
Tom Rolton of King of Cars in
Palmerston North sells cars mostly
under $5000, and says sales were
largely unaffected by the RWC.
[continued on page 8]
South
Auckland
pg 10
UK ROAD SHOW &
CHRISTMAS BBQ
c
oming to a venu
near you! e
INTERNATIONAL VEHICLE LOGISTICS SOLUTIONS
Web: www.autohub.co.nz
Contact: [email protected]
For Venue detai
ls and times, cont
Danny Knight - Ph
act:
0274 443 433 or
09 411 7425
email: danny@au
tohub.co.nz
6
4
SPRING SKY
IMO
942755
IMO
8507652
7
OSAKA TRS
Kuroda
Tel: 0725 33 4361
Fax: 0725 22 2397
gaojing@shinkyo trport.co.jp
kuroda@shinkyo trport.co.jp
SALES JAPAN
Jordi, Naoki
Tel: 03 6436 5534
Fax: 03 6436 3329
[email protected]
Wed 9 Nov
Fri 18 Nov
Fri 18 Nov
KOBE
Thu 10 Nov
Fri 18 Nov
Mon 21 Nov
NAGOYA
Nishihara
Tel: 0438 30 7488
Fax: 0438 30 7489
[email protected]
Kiwi Car Carriers Ltd
Yoshida, Tsugawa
Tel: 044 280 2366
Fax: 044 287 1533
noa [email protected]
[email protected]
Tue 27 Dec
Fri 16 Dec
Sun 4 Dec
Tue 15 Nov
Tue 15 Nov
TAURANGA
Tue 27 Dec
Fri 16 Dec
Sun 4 Dec
Tue 15 Nov
Tue 15 Nov
NAPIER
Mon 26 Dec
Thu 15 Dec
Sat 3 Dec
Mon 14 Nov
Mon 14 Nov
WELLINGTON
Tue 27 Dec
Fri 16 Dec
Sun 4 Dec
Tue 15 Nov
Tue 15 Nov
LYTTELTON
KIWI CAR CARRIERS
Jayne Bloemendal
Tel: 09 373 3375
Fax: 09 379 9477
[email protected]
SEAWAY AGENCIES
Ryan Lloyd
Tel: 07 575 9684
Fax: 07 575 9222
[email protected]
TAURANGA
Olsen Shipping Ltd
Allan Germain
Tel: 06 835 1913
Fax: 06 835 1250
[email protected]
NAPIER
KIWI CAR CARRIERS
Kevin Wilson
Tel: 021 925 401
Fax: 04 589 5223
[email protected]
WELLINGTON
KIWI CAR CARRIERS
Stacey Lemon
Tel 021 725 404
[email protected]
LYTTELTON
Please kindly place your bookings at each loading port: Nittsu, Isewan, Shinkyo and Auto Terminal Japan.
Cargo for vessels not calling Kawasaki, Kobe or Kisarazu will be transported to the nearest load port.
All Tauranga and Napier units will be land transported from Auckland
Schedules, Ports and Vessels are subject to change without prior notice
Sat 24 Dec
Tue 13 Dec
Thu 1 Dec
Sat 12 Nov
Sat 12 Nov
AUCKLAND
AUCKLAND
Wed 30 Nov
Thu 24 Nov
Sun 30 Oct
Sat 29 Oct
YOKOHAMA
KISARAZU TRS
Fri 11 Nov
Wed 16 Nov
Wed 16 Nov
KISARAZU
Fri 18 Nov
KISARAZU
www.kiwicar.com
Level 11, 2 Commerce Street, PO Box 106003, Auckland 1143, New Zealand. Phone +64 9 373 3375, Fax: + 64 9 379 9477, + 64 0800SHIPKIWI
Kakamu, Mano
Tel: 052 661 5180
Fax: 052 661 6811
[email protected]
Mon 14 Nov
Wed 16 Nov
Wed 16 Nov
KAWASAKI
Sat 19 Nov
KAWASAKI
KAWASAKI TRS
Tue 29 Nov
Sat 26 Nov
Thu 17 Nov
Sat 29 Oct
Thu 27 Oct
NAGOYA
NAGOYA TRS
Sun 27 Nov
Wed 16 Nov
Wed 26 Oct
KOBE
RORO Service from Japan to New Zealand
Sezaki
Tel: 078 805 2550
Fax: 078 805 2750
[email protected]
KOBE TRS
OSAKA
Tue 8 Nov
Fri 18 Nov
Fri 18 Nov
16
3
7
HOEGH CHENNAI
CARY RICKMERS
FALSTAFF
Mon 28 Nov
Sun 27 Nov
Tue 15 Nov
Fri 28 Oct
Wed 26 Oct
OSAKA
CUT OFF DATES
IMO
8320767
FALSTAFF
HEIGHT 6.3M
WEIGHT: 200MT
IMO
9448140
HEIGHT 5.0 M
WEIGHT 120MT
CARY RICKMERS 3
HEIGHT 3.5 M
WEIGHT 12.5 MT
HOEGH CHENNAI 16
HEIGHT 5.1 M
WEIGHT 80 MT
IMO
9153549
POLARIS ACE
HEIGHT 4.6 M
WEIGHT 80MT
VOYAGE
VESSEL NAME
 Vehicles surveyed
 Digital Photos
 KIPS Insurance
 Odometer Inspections
 Quick Transit time
editor’s note
Editor
Stian Overdahl
[email protected]
021 247 7782
Advertising
Brian McCutcheon
[email protected]
Free phone 0508 288 863
021 455 775
Contributor
Sandy Myhre
Designer
Adrian Payne
[email protected]
I
t began with a bad joke, and
ended with a handshake.
In the several days
between there was a media
uproar, speculation about a career
ending comment, and plenty of
indignation.
It may only have been a rough
joke at roast, but the tale of Tiger
Woods and Steve Williams’ is the
type of light drama we all love
to enjoy.
There’s no doubt that when
it comes to scandal, gossip, and
general entertainment we’re well
served by the mainstream media,
whether TV, print or magazines.
However when it comes to the
more serious stuff, it sometimes
seems that the same can’t be said.
With an election being fought
over some pretty serious and
fundamental issues, it’s pertinent
to ask how many New Zealanders
understand the problems the
country is facing, let alone what
might be done to confront them.
Election coverage doesn’t
always get to the bottom of an
issue – in part because it often
presents two politicians arguing
from distant sides of a great
divide, without the possibility of
compromise.
But ask a person who works
in the media about providing
more detailed coverage, and
they’ll generally tell you that
when something in-depth and
complicated is put together few
people bother to watch it, read it,
or click into it.
The reality is that many of
the problems that confront
New Zealand are issues around
prosperity rather than a lack of
good legislation, which is the job of
Government to provide.
However it’s perhaps a sign
of the times that in the current
election, economic issues are
mainstream.
Talking about tax, savings
schemes, and financial service fees
are seen by the major parties as
vote-winners, while the credibility
of Labour and National hangs on
their ability to deliver accurately
summed spreadsheets (one much
more so than the other).
The Green Party has modelled
itself on the hippy millionaire,
loving nature but no pauper.
However it’s worth reserving a
small amount of scepticism as to
whether our economic problems
will have a political solution.
While politicians anoint
themselves as the answer to our
problems, their track records would
suggest they often aren’t.
Autofile is also available as an
electronic copy via email.
If you’d like to receive
electronic copies please send
an email with your name and
organisation to subscribe@
autofile.co.nz. Back copies
are also available on request.
Copyright: Published twice monthly by: 4Media, PO Box 6222,
Dunedin 9059
All statements made, although based on information believed to be
accurate and reliable, cannot be guaranteed, and no liability can be
accepted for any errors or omissions. Reproduction of autofile in whole
or part, without written permission, whether by xerography or any
other means, is strictly forbidden. All rights reserved.
BUNDLING
NEW WAY
THE
con ct
RVE now
for yota
u
toolkitr/cFREE dealer
atalogue
SELL SMARTER UPSELL FOR PROFIT
Driving Solutions
Stian Overdahl
Editor
Retro Vehicle Enhancement | www.rve.co.nz | 0800 RETRO 4U
www.autofile.co.nz | 3
news
IMVIA legal case – what chance?
T
he date is set, with the
Judicial Review hearing set
for the end of this month in
the High Court in Wellington.
Coming two days after the
General Election, the case is
probably the last thing on Transport
Minister Steven Joyce’s mind.
But for importers of used vehicles
the legal case is the last possibility of
maintaining an unimpeded flow of
vehicles next year.
Chances of success are uncertain.
Applications for Judicial Review
typically have a low success rate.
Much depends on the day – the
judge, the strength of the legal
arguments, and whatever else.
But court cases have a way of
delivering the unpredictable.
Last year in the Christchurch
district court a private importer
managed to get a judge to overturn
NZTA’s refusal to comply a Nissan
Primera manufactured in 2000.
The man unwittingly brought
the vehicle into the country,
discovered it would not be
complied, so decided to take NZTA
to court.
His main argument was that the
results of the vehicle’s tail-pipe test
performed at the compliance shop
were similar to other cars that did
meet the emission standards.
According to people familiar
with the case, the first decision did
not go his way, but on appeal he
won, and the Primera was ultimately
complied.
The IMVIA’s case has little in
common. Simply put, their case is
that the Minister did not review the
rule in 2010 before implementing
the 2012 phase of the rule, but that
a review was required.
The hearing on the 28th will be
to determine whether the judge
TESTING
STATION.
Transport Service Delivery Agent for
See us first for
Specialists in Used Import Certification
FREEPHONE OR VISIT US ONLINE
FOR A LOCATION NEAR YOU!
0800 GO VINZ
www.vinz.co.nz
4 | www.autofile.co.nz
agrees that the High Court should
review whether the decision was
made lawfully.
If a review is granted, and it goes
the way of the IMVIA, then MoT
would have to fully review the rule –
something that could take between
6-12 months. Failure to do so would
to be in contempt of court.
And if interim relief is granted,
the doors for used imports will
remain open
No one on the side of the IMVIA
believes it’s a certain thing. But at
the same time they aren’t dreamers,
and a significant amount of money
has come from businesses to
put the IMVIA case forward. The
condition of advancing the legal
case was always that it was believed
that there was a chance to win.
IMVIA chief executive David
Vinsen says that the legal approach
is the last resort, after consultation,
discussions, submissions and
lobbying.
“We accept the need for the
rule, but we wanted the timing of
the implementation of the various
phases to be such that it wouldn’t
continually cut us out of our prime
stock each time.
“It was a reasonable
consideration, and in fact they
accepted that initially and adjusted
the start phases, but they’ve
steadfastly refused to accept it
further on.”
The IMVIA’s solicitors have set up
a Trust Account for businesses
that would like to contribute to
the legal challenge. The account
details are:
Solicitors: Cook Morris Quinn
Bank: ASB
Account #: 12 3109 019796 02
Reference: AUT706-1 Technology: here it
comes, ready or not
N
ow that our businesses are
humming happily along
with computer based stock
management systems, web
based services to help you run
your business, your own website,
leads coming in from all over the
country, and you’ve even got
your own face-tweet-book or
whatever, you could be forgiven
for sitting back thinking you’ve
got this electronic age all figured
out. Wrong.
The bad news is there seems
to be no ‘catch up’ any more,
rather just a constant need to
keep evolving and changing
to communicate with your
customer the way they want.
Scary figures are emerging
about how much is
done on a mobile
device. Thought you
didn’t need an iPad
or a smartphone? Maybe you
don’t, but your customer already
has one, and wants to visit your
website, book their car in for
service when it suits them, and
tell their friends all about it if
the service is rubbish. If you do
give in to your inner geek and
go the smartphone/ tablet way,
something amazing will happen,
you will get used to being able to
do anything, anywhere, anytime,
and you will give your business to
the companies that enable you to
do this. And then something will
click. What you need to continue
to interact with your customers
will become abundantly clear. So
hurry up. They are waiting.
news
More consumers turn to credit cards
W
hile consumers in a
recent survey said they
would be unlikely to
finance purchases over Christmas
with their credit cards, figures
suggest otherwise.
And dealers too are reporting
more vehicle purchasers wishing
to pay for some or all of the sale
with credit cards, incurring fees for
the dealers.
According to a Dun &
Bradstreet survey of Consumer
Credit Expectations, of those
consumers planning a major
purchase across Christmas, 72 per
cent said they would use their
own savings.
The survey also found that it
was young New Zealanders that
were most forthcoming over their
intentions to buy on plastic, with
more than two-thirds of those aged
18-19 expecting to use credit cards
over Christmas.
D &B general manager, John
Scott says the reluctance to buy on
credit bodes poorly for retail sales in
the holiday season.
“Kiwi consumers have had a
turbulent year and it shows in
their approach to spending this
Christmas. In particular, there
is an unusually conservative
attitude to new lines of credit or
limit increases heading in to the
holidays,” Scott said. But figures from Veda show
significant growth in credit card
enquiries in the year January
through to September, with the
bulk of the growth coming from
baby boomers.
Some of the inquiries can
present bank offers or ‘churn’. But
figures from the Reserve Bank of
New Zealand also show that the
total amount New Zealanders
Labour’s fuel
levy musing
W
ith the election
some two weeks
away, policy ideas
are flowing thick and fast on the
campaign trail.
Criticising National’s approach
to ACC, the Labour Party took a
swing at the recent hikes in ACC
levies for vehicles.
“Another contentious issue
Labour’s policy addresses is
National’s ACC levy hikes for
motor vehicles. Motorcyclists
have been particularly targeted
by National,” says Labour’s ACC
spokesperson Chris Hipkins.
“Labour is concerned that
increasing vehicle registration costs
are penalising those who own
more than one vehicle or those
who only travel short distances.
“As such we have committed
to investigating whether more,
or even all, of the ACC revenue
owe on their credit cards is rising
slightly, while the total amount of
consumer credit – personal loans
and financing – continues to drop.
Veda figures also show strong
inquiry for mortgages from younger
consumers, with the greatest
growth among Gen Y and Gen X,
suggesting young people believe
it’s a good time to buy a home.
Veda managing director
John Roberts believes the
statistics reinforce economy-wide
indications that the country has
reached the base of the credit
demand cycle and is now trending
incrementally upwards.
“What we are seeing is people
slowly returning to credit for their
purchases but the statistics show
people are cautious and not overreaching themselves,” says Roberts.
Nevertheless while credit card
inquiries are up, personal loan
inquiries continue to fall, in all
age brackets.
One Auckland used import
dealer says he’s definitely noticed
that buyers are keen to whip out
the plastic.
“Credit cards are amazing,
people want to use the credit card
facilities all the time. We just take it,
and worry about the fees later.
“We’re not getting the finance
inquiry, the people that come in
have got the money, or they’re
borrowing it on their credit card and
sorting it out later.”
He says it can make it easier to
close a deal, telling customers that
they can zap their card and there’s
no fees.
“A lot of yards don’t use it which
is good for us.”
Nevertheless with credit card
fees, dealers have to be more wary
about reducing margin.
Japan
Japan
Singapore
in
ng
Singapore
in
ng
New Zealand
currently collected through vehicle
registration should instead be
collected via fuel levies. Any such
change would be fiscally neutral
overall,” said Hipkins.
It’s no secret that motorcyclists
feel unfairly targeted by ACC
levies, especially in the cases
where one driver has more than
one bike. Licensing costs for a
motorbike 601cc and over are
$591.42 per year, so it starts to
add up pretty quickly once you’ve
got more than one.
And as motorcyclists say, you
can’t drive more than one at the
same time.
Those who drive their vehicles
infrequently such as the elderly
would also benefit.
However companies that run
up heavy kilometres on their sales
fleets or other vehicles would see
significant extra costs.
New Zealand
Specialists in Pre-Shipment
Inspections in Japan






IC
JEV
r
o ised
Full Border Inspections
Biosecurity Inspections
Structural Inspections
Odometer Verification
Pre Export Appraisal
Vehicle History Reports
Auth order
B
NZTA ection
p
Ins
y
Agenc
JEVIC is an authorized NZTA agent for
structural border inspections
JEVIC NZ
09 966 1779
www.jevic.co.nz
www.autofile.co.nz | 5
news
Sales rebound follows RWC
W
hile many used dealers
experienced sales
almost grinding to a
halt while the rugby was on TV,
the end of the cup has seen a lift
in sales.
Craig Wall at Wall Motors in
Auckland says that while there was
a drop off in sales during the cup,
they weren’t hit as hard as other
dealers. He says the pick-up after
the world cup was “instantaneous”,
with more enquiries and more
activity on the yard.
The cup may also have muted
the usual impact of the school
holidays.
Wall says that following on from
the cup he thought the school
holidays would ruin them, but
instead the first week was superb,
though the second was a bit quiet.
“School holidays didn’t affect us
as much as usual, but I think that’s
because a lot of people didn’t go
away after the cup.
“Even the workshops said
they were busier than normal in
school holidays because people
weren’t away.”
Wall believes it will be a strong
finish for the year through to
December, with the emissions rule
bringing in buyers.
“People are realising it, and I’ve
noticed already people are saying
they’ve heard they won’t be able
to buy that sort of stock next year
when it runs out.
“There’s been articles in the
media and we’re telling everyone
who’s looking – ‘You do know this
car won’t be able to brought into
New Zealand next year?’
“I think people are going to
wake up. We’ve got a lot of stock
coming like most dealers.”
While he’s not expecting
prices to rise immediately,
with all the extra stock
on dealer yards, he’s telling
customers that when the stock
runs out they’ll see a huge jump,
anything from $2000-5000.
“It’s certainly made some
models at the moment seem pretty
attractive price-wise.”
Statistics for used import sales
show a slow decline in Auckland,
similar to the nationwide sales figures.
Wall says that the year has been
a mixed bag.
“I had a very good January, it
tapered off, picked up a bit in April,
and has slowed down since April.
I think retail in general has been
slower. Cash is down.”
It’s a different story in the
Auckland property market, where
there is currently some serious
competition in suburbs perceived
to be ‘up-and-coming’, and as a
consequence well-priced.
With many houses selling by
auction, buyers are getting into
bidding frenzies.
But perhaps the main difference
between housing and used import
market is that the real estate
demand exceeds supply and
people are getting huge prices,
whereas in car supply has often
exceeded demand.
That could change mid-way
through next year. But for now,
most dealers have got six months
of stock to sell.
New vehicle sales drop
N
Spring Wind Voyage 1
Osaka 31 Oct, Nagoya 1 Nov, kawasaki 2 Nov,
Auckland 15 Nov, Lyttelton 17 Nov
Trans Future 5 Voyage 53
Osaka 24 Oct, Nagoya 25 Oct, kawasaki 29 Oct,
Auckland 17 Nov, Lyttelton 19 Nov, Wellington 21 Nov, Nelson 22 Nov
Trans Future 6 Voyage 50
Osaka 7 Nov, Nagoya 8 Nov, kawasaki 12 Nov,
Auckland 30 Nov, Lyttelton 2 Dec, Wellington 4 Dec, Nelson 5 Dec
6 | www.autofile.co.nz
ew vehicle sales in
October were weak,
with many blaming the
focus on the Rugby World Cup.
New passenger car sales of
5,428 were down 438 units (7.5%)
on October 2010. Commercial
sales of 1,431 were up 11.7%
(167 units) on the corresponding
month last year.
However while rental
sales contributed 1000 to the
passenger vehicle total, this
total was down significantly
from the 2100 in October last
year, perhaps suggesting a lesser
influence of the RWC on new
vehicle sales. Compared with the
previous month, sales these were
down 256.
Motor Industry Association
Chief Executive Officer Perry
Kerr says the overall sales
numbers were disappointing,
given that the Japanese
industry is finally back on its
feet following the catastrophic
earthquake and tsunami.
However with many
component suppliers affected
by the flooding in Thailand,
ute shortages could be on the
horizon.
“Unfortunately production
of utes is now taking a hit due
to the extensive flooding in
Thailand which has closed
the vast majority of parts
manufacturers. This has resulted
in the vehicle manufacturers
ceasing production,” says Kerr.
“ Looking forward our
expectation is that November
will remain weak as buyers
attention is diverted towards the
forthcoming election. However
we remain hopeful that total new
vehicle sales for the full year will
exceed 2010,” he said.
The top selling model for the
month was the Toyota Corolla
with 528 registrations (this
number being boosted by rental
vehicle sales), the Hyundai I30
with 309 registrations and the
Toyota Yaris with 305.
news
OECD study questions the value of scrappage schemes
T
he OECD’s International
Transport Forum has
concluded that the value
of vehicles scrapped in scrappage
schemes is often greater than the
environmental and safety gains.
The organisation, of which New
Zealand is a member, examined
scrappage schemes implemented
in three countries during the Global
Financial Crisis.
As the recession struck in 2008,
automakers found themselves with
enormous stockpiles of unsold new
cars, with factories running at full
production while consumer wallets
were slammed shut.
Governments in countries with
manufacturing industries grew
alarmed at the spectre of large-scale
failures in the automotive industries,
and introduced new-car subsidies,
such as the ‘Cash for Clunkers’
scheme in the US.
In the States, US$3 billion was
fed into new vehicle sales across 12
months, with similar programmes in
Germany and France.
While new car incentives have
obvious economic benefits for
vehicle manufacturers, it’s also
claimed that the introduction of
newer vehicles results in lower
emissions, and a safer fleet.
The ITF study examined the
monetary value of improved CO2
and NOx emissions and safer
vehicles, against the monetary value
of the scrapped vehicles.
In the Cash for Clunkers scheme
for example, while vehicles could be
up to 25 years old, they also had to
meet certain efficiency standards,
and had to have been insured for the
past year, ensuring that the vehicle
still had some remaining life.
US dealers receiving trade-ins
were instructed to replace the
engine oil with sodium silicate and
run the engine; the silicate turns to
glass, causing the engine to seize
and damaging all moving parts,
making the trade-in worthless.
(In Germany, dealers delivered
cars to scrap merchants, and some
50,000 clunkers were exported to
Africa and the Middle East. Dealers
were effectively incentivised to
new Nissans
stockpiled at the
Sunderland test
circuit in the UK
export vehicles if they could, since
the value of scrap metal collapsed
during the GFC).Of the three GFC
scrappage schemes the ITF studied,
the US was the most successful, with
80% of the value of the scrapped
vehicles recovered. For Germany
the figure was only 25%, while for
France it was 45%.
In all three cases the value of
safety benefits was monetised as
being slightly below 20% of the
value of the scrapped vehicles.
CO2 savings in all three cases
were only marginal, since although
the newer vehicles are more efficient,
yearly distance driven declines with
age, so the oldest, most-polluting
vehicles are also driven least.
Savings in NOx emissions were
significant in the US, since many of
the vehicles scrapped were large, and
were replaced with smaller vehicles.
The study estimated that the
NOx avoided in the US was worth
60% of the cost of scrapped
vehicles, a result not replicated in
France or Germany.
Sell more cars with no risk
Loans approved no deposit
and non recourse
We assess each customer’s loan application on its
merits and consider minor adverse credit too.
✓ No deposit, Non recourse
✓ Learner Licence OK
paid on every loan with no claw
✓ Commission
backs on early settlements
✓ Access to the decision makers
✓ Lending 6 days a week
Richard Shuttleworth
027 335 0131
Michelle Hiscocks
021 773 814
Call us now to discuss
your new finance facility.
0508 415 576
www.genevafinance.co.nz
57953 Geneva Finance Autofile Ad Half Page PRESS.indd 1
25/10/11 2:28 PM
www.autofile.co.nz | 7
news
[continued from page 1]
Cheapies thrive in slow retail market
“We had a good month. We’re
happy with our market, because
there are a lot of people wanting
cheap cars, while I know that other
retail yards have been slow.”
Rolton says that consumers are
after the cheaper cars, and so he’s
deliberately keeping cars below
$5000 to suit buyers’ tastes.
He expects there may be some
more buying activity in his area as
a result of the emissions rule next
year, but expects prices on vehicles
to increase as well.
But dovetailed with price is
supply, and many of the vehicles
Rolton sources are trade-ins from
dealers. If dealers see a market for
selling cheapies less of them may
dispose of trade ins.
However Rolton hopes he’s
got good relations with his
suppliers and makes it easy
enough for them, so that supply
will continue, though he isn’t too
fazed either way.
“If the game changes we’ll just
find another way to skin the cat.”
Another factor driving prices
and supply for wholesalers may be
more about consumers choosing
to sell their cars rather than trading
them in.
Ian Charlton of Advantage
Cars says that some dealers are
receiving less trade-ins in part due
DEALERS SAY THEY WANT
SOMEONE TO REPRESENT THEM.
Well, that’s what we’ve always done.
For nearly 100 years, MTA has been representing and
supporting the views of dealers to politicians and policymakers.
As an MTA member your interests are our first priority...
Protecting your interests to secure the future of your industry.
Our extensive member network ensures we are familiar with
the issues you face and you will benefit from the collective
support MTA can provide, all day, every day!
For more information about how to join go to
www.mta.org.nz/join or call us on 04 385 8859
Get the MTA brand behind your business; we are
here to help you succeed.
8 | www.autofile.co.nz
to dealer pricing – what Charlton
calls ‘old school versus new school’.
“There are a lot dealers that are
pricing their cars very accurately,
like we do. We price our cars to be
bang on so that when you search
Trade Me or AutoTrader ours comes
in the top three.
“We’re pretty firm on our pricing.
We’ll move, but it’s hundreds not
thousands.”
But there are still the old school
car dealers who load thousands on
the window price, says Charlton.
Customers receive a $2-3000
discount and feel that they’re
receiving a great deal.
This practice impacts on trade
in, as often the discounting
occurs through guaranteed
trade-in values.
“A customer will come in here
and get offered $1500 for their
trade in, which is what it’s worth
in the real world. They’ll go to a
discounting dealer and get offered
$3,000, and they’ll say ‘The deal
was too good we couldn’t turn it
down’, even though they paid way
over the odds at the other end.”
Dealers who are priced
right, says Charlton, will tell
customers what their trade is
realistically worth, and many of
these will choose to sell their car
themselves on Trade Me rather
than trading it in.
Having less trade-ins is “almost
easier” he says. “I can’t say it’s
not like it’s a profit centre we’re
missing out on.”
However fewer trade-ins means
that their value has also firmed up,
something that could continue.
While there’s still a mix of the older
style pricing and the new pricing,
Charlton believes that the trend of
‘pricing right’ will continue.
However whether established
dealers will consider selling
trade-ins on their yards, one fact
that may dissuade many from
testing the waters is previous
experience with the Consumer
Guarantee Act (CGA).
Generally speaking, repair
costs on older cars have the
potential to be a much higher
proportion of the retail price and
of the margin, and many a dealer
tells the tale of a $3,000 repair on
a car of the same price.
Rolton sells vehicles by tender,
without the CGA applying. He
featured in an Autofile dispute case
published last month, where the
tribunal didn’t accept that he was
selling by tender.
Accordingly he’s adjusted the
way he trades, both to make it
clearer for customers, but also to
keep a better paper trail of bids;
part of the issue with the tribunal
case was that the evidence given
of bids in the form of iPhone text
messages was not sufficiently clear.
“We’ve made it black-andwhite that we’re an auction and
tender centre, we’ve got it on all
of our signage, and all of our CIN
cars, and we’ve got tender forms
on the windows.
“We’re trying to make it clear;
people understand and they’re
happy with that sort of pricing
structure and set-up.”
Rolton says if a customer has a
minor issue with a vehicle he will
attend to it – “We’re reasonable if
the customer is reasonable”.
IBC launch new
UK auction website
New website gives dealers the opportunity to search
and bid for UK vehicles direct from the UK
In another step along the path of
the UK market becoming a source
of used vehicles for New Zealand,
IBC has opened up a new supply
channel offering vehicles from UK
auctions, a method of purchasing
familiar to most dealers.
The website gives NZ dealers
access to the approximately 5000
vehicles auctioned each day.
IBC’s New Zealand agent
Mike Tyler says they’ve worked
to launch the site quickly so that
dealers can get an idea of what
vehicles are available, and at
what price.
They also provide the support
on the ground in the UK to make
the process as simple as possible,
including:
 Display of market values to give dealers a price indication.
 Condition reports direct from the auctions, including the
UK auction grade, where 1 is used for new vehicles with the
higher grade indicating poorer condition.
 Full administration backup to ensure purchased units will
comply in New Zealand, and to inform of any associated
additional compliance costs;
 Inspectors on the ground at auction who will check vehicles
for rust and any repair issues and will contact the dealer if
the bid needs to be cancelled or reworked A post purchase
inspection with comprehensive report is prepared at IBC’s
inspection facility and sent to the dealer. An independent UK
inspector will test drive and use a scanner to check for any
fault codes. If any problems are detected prior to shipping
the dealer is notified and can cancel the purchase.
“We don’t want to send vehicles half
way around the world to find out
they’ve got problems,” says Tyler.
For most buyers the UK
market is very new, and Tyler
says that dealers will need to
spend some time analysing which
vehicles will work for them in the
local market.
His first impression is that
later model and high end Euros
will work well, as will some of
the bigger-engined Japanese and
US product.
Later model SUVs such as
Range Rovers, X5’s and XC90’s
also stack up as does a lot of the
commercial product – manual
diesel vans and pick-up trucks
“For everyone who I know
that has been involved in the UK
market it’s exciting times because
they’re looking at stock that in
Japan you haven’t got a chance
of owning, whereas out of the UK
you’ve got a realistic chance of
purchasing vehicles,”
Dealers can expect to wait
eight weeks for a vehicle,
including a week to transport and
inspect the vehicle in the UK, a
week to arrange shipment, and
then six weeks transit time to
New Zealand.
Dealers will need to make a
deposit on the vehicle at the time
of shipping, with the balance to be
paid on arrival in New Zealand.
www.ibcjapan.co.jp
Regional
Roundup:
L
South Auckland
et’s be honest here. The mere
mention of South Auckland
conjures up the image
of a vast socially disadvantaged
area of land bordering Auckland’s
southern motorway. But if South
Auckland has had its share of
crime, the changing face of the
population and a serious and
constructive social effort has
alleviated some of the worst
aspects. It’s not the same today as
it was, say, five years ago.
In 2007 over half of South Auckland’s
population was aged under 30, and
consider the numbers: Manurewa,
Papatoetoe and Otara (to name just
three suburbs) have a population of
nearly 200,000 – far bigger than a lot
of places elsewhere.
House prices are generally
less expensive than the rest of the
Auckland isthmus but that means
better value for money, though parts
of the region are pricy. According to
one car dealer who lived there for
years, it’s a far friendlier place than
anywhere else he could think of.
There’s a significant migrant
population in South Auckland,
many of whom are businessowners, to the benefit of car
dealers. And even if they aren’t the
families tend to shop for everything
including cars in Manukau because
of the proximity to home.
Those huge numbers of the
under 30s are now in the target
age group for car buying; they are
business people, family people, even
if there’s a high proportion of blue
collar workers and, yes, beneficiaries
compared to other areas.
The industrial estates also means
a large commuting workforce hailing
from various points around Auckland
and as far south as Hamilton, many of
whom are on healthy salaries.
There is a significant number of
co company head offices in South
Auckland and one needs only to think
of the car industry as an example –
Ford, Mazda, Kia, Peugeot, Mercedes
and Hyundai to name a few.
10 | www.autofile.co.nz
Dealers benefit from commuters
who will buy their cars in South
Aucklana along the ‘golden mile’ of
car dealers near the vast Manukau
Shopping Centre. Dealerships sited
here are often perceived to offer
better prices than, say, Newmarket,
simply because it’s Manukau.
Whether there is substance in the
assumption is almost immaterial – it’s
consumer traffic generated from
the estimated 20,000 cars a day that
travel along Great South Road, and
further soute there’s also a strong
motor vehicle retail, mostly secondhand, presence.
In the heart of Manukau City near
the shopping centre is South
Auckland Motors. Dealer Principal,
Matthew Newman, has been at the
helm for 25 years.
He describes October as ‘scratchy’
overall but the exception is the new
Ford Ranger where he says they’ve
been overwhelmed by interest
and demand. The problem at the
moment, however, is supply, not
particularly because of the Japanese
earthquake and tsunami but thanks
to the more recent floods in Thailand.
His dealership has always attracted
Matthew Newman
a lot of fleet business because of
the brands, because of the strong
commercial presence in Manukau,
and because they’ve been operating
on the site for nearly 30 years and are
a well-established identity.
He says business overall is
‘travelling fairly nicely’ and the Ford
Territory diesel has been ‘an absolute
sensation’ in recent times. Newman
says the profile of customers of the
Mazda brand hasn’t changed, and
remains divided equally between
fleet and private sales.
On the used car side they sell
mostly in the $12,000 - $16,000
bracket, which is slightly lower than
two years ago
“Used car buyers are more
conservative across the board
because of the recessioy and the
portion of those who finance cars
is about one-third. Five years ago it
would have been 50 percent.”
Newman says they made
some internal changes to the used
car department to ‘smarten up
performance’ and in recent months
he’s seen the finance penetration
bounce back to around 50 percent
thanks to marketing to their
own customer base. And they’re
beginning to attract Asian buyers to
Ford who have previously been more
accustomed to the Japanese brands.
As for light commercials, Newman
says there’s been a ‘significant’
increase in sales over last year
attributable to the rural sector (they
have a branch in Pukekohe) because
of the good pay-outs in dairy and
wool and from the large market
garden presence where some crops
seem to be blooming. If you haven’t
By Sandy Myhre
heard of Pukekohe spuds you haven’t
lived. In that sense this dealership is
no different to a rural dealership even
if it’s plonked in the middle of the
nation’s largest city.
South Auckland is also home to
a large number of major head
offices and a noticeable number of
infrastructure companies (roading,
electricity, transport and the like)
all of whom traditionally buy light
commercials. Newman says that over
the past three or four years the vehicle
of choice has changed and he’s seen
buyers move away from the highly
practical utility vehicle to vehicles
more suited to their family needs.
Dotted around South Auckland
in three branches is Buy Right Cars,
which sells primarily Japanese
imports. The employ 40 people so it’s
a fairly big business and it’s fair to say
they do more business in the sector
of the used car market that South
Auckland Motors does not- cars
under $12,000.
Buy Right sell predominantly
to local families (Pacific Islanders,
Indians,sPakeha) as well asd other
Aucklanders who will travel to
the area from the North Shore or
out West to look for cars. It’s that
perceived bargain thing again.
Sales Manager, Daniel Warman,
says the current market is fluctuating
and they are ‘pottering along’. They
have had good days and bad days
in recent times though he can’t
pinpoint the reason for either. He’s
selling models across the board, cars
that come in all sorts of shapes and
sizes, and about 50 percent of his
buyers are financing their purchase
[continued on page 13]
The 6 profit centre
th
Accessory Sales
While most dealerships focus on the five
traditional profit centres, Retro Vehicle
Enhancements (RVE) is helping dealers set up a
sixth centre – accessory sales.
The company offers a range of products, from
window tints, leather seats, integrated reversing
cameras, Bluetooth, and MP3 players, to installing
electric sunroofs and cruise control.
Most importantly RVE sees dealerships as
their salespeople, and on most products a retail
customer who approaches RVE will get quoted
25% more than the dealer’s price.
That 25% is a profit margin dealers can use to
their advantage. And it’s one that is often higher
than what they would receive if the customer
ordered GPS, DVD or leather upholstery as a
factory item.
RVE products are all of a high quality and
finish, and they are the only NZ company
recognised by NZTA for their airbag seam sewing
process, meaning they are able to produce fully
compliant airbag seams.
“The customer appreciates it,
but some salespeople are just
not using that position to full
advantage; this is when they
can deliver everything their
customer wants.” says Wilson.
RVE accessories are also
ideal since they are semi
universal and can be fitted to all
vehicles, meaning salespeople don’t have to
worry about whether an accessory will work on a
particular model.
RVE has service centres in all the major urban
centres throughout New Zealand. Turnaround is
quick, and most customers don’t mind waiting a
week or ten days to get the car they really want.
A fast turnaround can also be an advantage
if a buyer wants a particular feature such as a
sunroof, while the dealer wants to sell a car that’s
been on the
Selling is about timing
While RVE has the accessories, they also have the
tools to ensure that accessories are introduced at
the right time, with incentives for the right people.
RVE Sales Manager Craig Wilson says that
one reason why accessory penetration in some
dealerships is low is because salespeople often
introduce accessories at the wrong time, and
without enough product knowledge.
“All too often they end up giving the
accessories away. The timing and the tools are key.”
Wilson believes that in some dealerships,
customers aren’t always given the opportunity to
buy extras such as window tints.
If a customer is not asked about accessorising,
the dealership has let a profit opportunity slip.
Successful salespeople quickly gain the
confidence of their customers, and highlighting
the opportunity to personalise the vehicle they
have just purchased is something that appeals to
many new car buyers.
showroom floor for
three months.
“Do you tell the customer to
wait for the genuine article from e.g. Germany,
and wait another three to four months for the
car to be built and shipped, or do you sell them
the one on the floor, have RVE install the electric
sunroof, and get the money the next week?”
Creating unique models
Dealers also have the option of bundling
accessories into niche models in their
showroom in order to create an exclusive
model and unique selling point.
This can be especially useful if there is a
reserve of a lower spec model that the dealer
wants to move on.
RVE offer special rates on bundling, and
dealers can use discounting from the distributor
through bulk buying in order to brand their
vehicles as being different.
One dealer bundled a number of accessories
into an SUV that came originally with very few
extra features.
The vehicles were then advertised as a
‘Limited Model’, exclusive to that dealership, with
advertising that drew attention to the extras.
Having a ‘Limited Edition’ vehicle aids in
the selling process, and the psychology of the
buyers means that if they know that there’s only
a handful of models left, and when they’re sold
they’re gone, it encourages them to buy.
Retro will work with dealers to design
the complete package, which can include
customised badges for the model.
The accessories will create a unique selling
proposition with a dealer’s own branding, which
no one else can match.
Training Videos
Retro has just released the first of a series of
dealer aid Training videos, “How to use the RVE
Dealer Catalogue as a sales tool”, with “How to sell
accessories for profit” and “Bundling Accessories
to sell more cars” coming soon. These videos are
under the dealer tab at www.rve.co.nz and are
well worth checking out.
news
VEHICLES
WANTED
BUYING NOW
miles motor group
Toyota
Nissan
Mazda
Honda
VW
Lexus
Hyundai
Kia
We are always looking to purchase
NZ NEW CARS AND COMMERCIALS
PAUL CURIN
0274 333 303
[email protected]
WE PURCHASE NZ NEW CARS AND COMMERCIALS
FOR ALL OUR FRANCHISES
029 293 1232
[email protected]
www.inghamdriven.com
Karl Briggs 0274 721 551
[email protected]
‘Loan shark’ changes announced
National has made a further announcement of
its plans to target loan sharks.
Finance Minister Bill English says Cabinet
has approved a package of changes, including:
-Protect important goods, such as tools of
trade, necessary household items, and motor
vehicles with a value of up to $5000, from
being used as security against a loan (except if the credit contract is for
the purchase of such an item).
-Provide that borrowers are not liable for the costs of interest or fees
if their lender is not registered, as required, on the Financial Service
Providers Register (a recent survey found 35 per cent of third-tier
lenders were not registered).
-Extend the ‘cooling-off period’, where a consumer has the right to
cancel a credit contract, from three to five working days.
Members of the finance industry spoken to by Autofile expressed a
mixture of bafflement over the rationale behind some of the possible
changes, as well concern over possible effects on the industry.
However the proposed changes are likely to be further refined
through consultation.
VINZ avoids earnings guidance due to emission rule
Audi VW
Brett Harris
News in brief
www.farmerautovillage.co.nz
Mitsubishi • Mercedes Benz • Honda
Hyundai • Isuzu Utes
SsangYong • Great Wall
We purchase NZ new cars & commercials.
All makes & models. Anywhere in NZ.
Vehicle Inspection NZ has said that changing used import volumes due to
the Emission Rule make it too hard to forecast second-half profit, reports
BusinessDesk.
The Emission Rule makes the outlook “difficult to predict,” said VINZ
chairman Kenneth Worsley, in the first-half report. “The first three
months of 2012 are likely to be “particularly challenging.”
Worsley said trading would also be dampened by the “fragility”
of the New Zealand and the global economy. “Pressure on margins is
likely to continue.”
To broaden its business beyond certification, VINZ rolled out a
network of testing stations, competing for a share of the warrant of
fitness and certification market. This has provided “more consistent
results” for the company though it has had to absorb rising labour costs
that couldn’t be passed on to customers in a competitive market.
According to BusinessDesk, VINZ, which trades on the Unlisted
platform, had revenue of $5.89 million in the year ended Sept. 30, up 1.3
percent from a year earlier. Profit rose about 13 percent to $306,634.
Jucy plans great escape
BUYING NOW
NZ NEW CARS
AND COMMERCIALS
Contact: Rhyan Letman
 Nissan
 Subaru
 Volkswagen
 Audi
 Peugeot
 Skoda
 Toyota
 Honda
 Suzuki
 Mitsubishi
 Holden
 Ford
 Kia
 Hyundai
 Mazda
0274 422 398 [email protected]
TO ADVERTISE HERE CONTACT:
Ph 0508 288 863 or 021 455 775
[email protected]
12 | www.autofile.co.nz
New Zealand rental company Jucy has announced plans to expand
into the US, after it was awarded funding of $500,000 as a result
of winning the 2011 University of Auckland Business School
Entrepreneurs’ Challenge.
The company, which started out nine years ago with 35 Daewoo
cars purchased from the Auckland Hospital Board, plans to start
in the US with 100 Chrysler Town and Country vans that they will
convert into Jucy campervans using their manufacturing business
based in Auckland. “We’re totally excited about launching into the US. No one has
really launched a product like Jucy into the US rental market before.
Los Angeles will be our headquarters and we’ll also begin by opening
depots in San Francisco and Las Vegas,” says chief executive Tim Alpe.
The company currently has 2500 vehicles in Australasia.
news
Industry movers
Paul McCabe was recently appointed Technical Service Engineer at
Ford Motor Company of New Zealand, a technical position for the Ford
Dealer Network.
Denise Bowden was appointed Finance and Insurance
manager at Davie Holden Manukau. Denise has held various roles
including having previously worked at both Newmarket Nissan
and Counties Manukau.
John Frear has been appointed to the newly created position
of General Manager Sales & Marketing at automotive accessory
company Best Bars Limited. The company produces vehicle tow
bar systems, vehicular bike racks, as well as light truck cargo trays,
cargo barriers, and folding tonneau covers for ute decks.
Frear has experience in management roles with New Zealand
and Australian manufacturing companies, and was most recently
Regional Manager for Australian-owned mining/manufacturing/
distribution business, OneSteel.
Stephen de Kriek, CEO of Best Bars, says the appointment marks
the next phase in the evolution of the company, which is looking to
build on its success, not just in New Zealand but also in developing
a bigger presence in similar markets around the world.
TO FEATURE IN INDUSTRY MOVERS
EMAIL [email protected]
[continued from page 10]
Regional
Roundup:
South Auckland
– a ratio that hasn’t seen any
discernible change in the past year.
October was better than he thought
it would be, given the distraction of
the Rugby World Cup.
If car sales ranged from average to
‘scatchy’ in South Auckland, bike sales
ground to a halt during the month of
October, “completely dead” says Blake
Gillard who manages sales and parts
for Team Motor Group’s branch in
Takanini. Up until then, though, sales
were good and he puts the lack of
interest in October entirely down to
the Rugby World Cup.
“Motor cycles are purely
recreational vehicles and anyone who
thought of buying one in October
was busy watching matches and
doing the barbecue.
“But now the rugby’s done and
dusted we’re seeing an increase
in interest.”
TMG market the KTM brand,
European off-road bikes, and in that
sense it’s more of a niche product
than the more established Japanese
brands. They’re two-stroke bikes,
what Blake Gillard calls ‘old school’
bikes and his customers tend to
be one-man-band trades people –
builders, electricians, plumbers and
the like – who ride for fun and who
pay in folding money.
“It’s ‘cashie’ business. They put the
money aside, keep it away from the
Mrs, and then just come in and buy.”
He used to be based in West
Tamaki and even thougf they’ve
moved to Takanini, he’s keeping his
customers from all over Auckland.
In fact some come from as far afield
as Hastings, Napier and Wellington,
partly because of the service
provided and partly because they are
niche customers wanting the specific
KTM brand.
His retail business hasn’t been
adversely affected by the hike in ACC
NZ labour market report Nov 2011
in association with Automotive Employment NZ Ltd
Last month quality candidate
enquiry was hard to call to action
but as highlighted in last month’s
report job seekers gravitated
towards roles perceived as more
stimulating. Some recruitment
assignments attracted no less than
75 applications where the more
generalist roles proved hard to
fill at times attracting low volume
and low quality skills.
Job board SEEK held a forum
for recruitment managers in the
last week of October. The forum
produced a range of statistics over
a prolonged period showing the
increase in job seeker enquiry
during the recession through to
current date. While a clear drop in
candidate enquiry was evident last
month from SEEK’s statistics, if we
use candidate enquiry patterns
and extrapolate these over the
next two to five years it is probably
reasonable to expect the situation
to become a serious concern. It is
easy to forget unemployment was
just 3.6% in June 2006 with 79,000
unemployed verses 154,000 today,
[source statistics NZ]. We suspect
Prime Minister John Key will have
few if any problems producing
the 65,000 extra jobs in three
years he promised during the
levies that sky-rocketed costs on bikes
over 600cc because he doesn’t stock
those. Neither does he stock scooters
because it doesn’t suit the area.
“Scooters suit the city much more
and our branch in Newmarket sells
those. They’re just not big enough
to cope with the motorway and
most commuters coming into South
Auckland have to use the motorway.”
He sees sales of his off-road and
leisure bikes increasing as summer
kicks in, it’s that kind of market.
elections; particularly so given
the average prediction in NZIER’s
Consensus Forecasts is for the
economy to expand by 2.6% in the
year to March 2012. If candidate
shortages continue to emerge as
forecast, wage growth over the
next two years may prove another
challenge for employers to keep
on top of.
For recruitment organisations
the changing media channels
with which some job seekers
seem to be communicating will
add to the challenge. It will not
be too long till smart phones
are standard equipment for the
masses. Candidates will be viewing
job boards via smart phone then
accessing synchronised accounts
online which pair to complete
the transaction. Gen Y are already
starting to use Social media to
apply through facebook job boards
with employer/recruiters using
Youtube to promote companies
and twitter to alert potential job
seekers to new jobs. In 2005 it was
totally unacceptable to apply for a
job via text but with some 7 billion
worldwide texts occurring each
day it is hardly surprising this may
become a reality far quicker than
we all expect.
So, in a nutshell,lthough South
Aucklandomay have restructured
under the Supercity umbrella, the
ironc is that individual suburbs or
regions will now consciously promote
their own areas more vigorously
simply because of the largeness of
the Supercity connotation.
South Auckland needs only
to capitalise on what it’s got,
which is substantial. These are
changing times.
www.autofile.co.nz | 13
new cars
Suburu-Toyota’s love-child
eagerly awaited
O
ne of the most widely
anticipated new vehicles is
not one but two, the co-produced
Subaru BRZ and Toyota FT-86.
Both companies have
perfected the slow tease. Toyota
had the concept on show at the
Geneva Motor Show in March;
Subaru showed a skeleton and
some of the mechanical parts of
the vehicle at the Frankfurt Motor
Show in September.
Subura have now released
photos ahead of the BRZ concept
which will be shown at the LA
Motor Show next week. The
production BRZ will also be
shown at the end of the month at
the Tokyo Motor Show.
Meanwhile images purported
to be of the production Toyota
FT-86, scanned from a company’s
parts brochure have leaked online.
Nicknamed at first showing
the ‘Toyobaru’, the vehicle will
come with a Subaru-derived flatfour engine, naturally aspirated,
with direct injection and port
injection technology from Toyota
- dubbed the D-4S.
However while the two cars
may have a certain amount in
common, the designers have
obviously taken different paths.
There will also be significant
differences in handling and
performance.
The BRZ will come with a
six-speed transmission (manual
or auto) and Subaru is promising
that the unique rear-drive chassis
will offer “pure handling delight”.
Power output for the BRZ with
be just under 224kw, while the
FT-86 will be closer to 150kW
The FT-86 will have an
estimated kerbweight of 1,100kg.
The BRZ is due to begin
production in the second quarter
of 2012. According to Subaru
of New Zealand’s website, a
decision will be made early next
year depending on production
availability if and when the BRZ
will join their line-up.
One thing for sure is that if
the vehicles will attract as much
attention once they’re released,
they’re bound to be strong
sellers.
Takeri points to
future for
Mazda6
M
azda have released pictures
of their Takeri concept
vehicle ahead of its public
showing at the Tokyo Motor Show
later this month.
Foreshadowing the new
Mazda6, the sleek design matches
the carmaker’s philosophy of
efficiency through lightness and
improved aerodynamics.
The car features Mazda’s first
regenerative braking system,
which, since it isn’t a hybrid,
stores the captured energy in
14 | www.autofile.co.nz
capacitors that is then used to
power the vehicle’s electrics,
reducing the engine load and
increasing fuel economy.
The Takeri has the same
SkyActiv-D 2.2-litre diesel engine
as the in the new CX-5 SUV.
The CX-5, to be released in
New Zealand early next year,
will achieve fuel economy of 4.5
litres/100km with its diesel engine.
Mazda says the car follows
its Kodo design philosophy, first
shown in the Shinari concept
vehicle (right) in
May 2010.
The Takeri
follows on from
that vehicle, and
while clearly closer to a production
vehicle, maintains much of the
Shinari’s elegance.
Beautiful concept vehicles are
all very well, but often car makers
are criticised for their lack of
influence on the finished product.
However earlier this year
Mazda showed their Minagi
concept, and when the
production version of the CX-5
SUV was released later that
year it was obvious the Minagi
concept was a near productionready preview.
The Takeri could be similarly
close to the final look for the
Mazda6, no doubt a car prepared to
compete on design credentials.
Let’s be careful
out there
By David Boshier
General Manager
AutoBase Ltd
email: [email protected]
AutoBase Twitter: @DealerBaseNZ
Scammers are always trying to access your accounts, and if successful
will rip-off you and your customers writes AutoBase’s David Boshier
T
he internet offers a huge
range of opportunities
to everyone and some
people use it for good, some for
bad. To say that there is a sucker
born every minute is probably an
understatement when it comes to
the web, as daily many people fall
prey to internet-based scams. For a
company like AutoBase, this means
we spend hours and hours of time
defending and countering internetbased attacks. Just this week, two
scams were doing the rounds of
classified based websites.
One of the tricks used is that
the true victim is unaware of the
scam right until the last minute, by
which time it is generally too late.
Many people are surprised by how
organised and targeted internetbased scams are and think “I’m so
small, why would they attack me?”
Like a few things in life as the scam
unfolds you find that you are only
part of a bigger and more complex
picture. The timings used are
very exact and ensure maximum
impact on the intended targets
and time periods - long weekends
are favourites. During this time
the scammers are banking on
the fact that the targets are more
relaxed and their system and
web providers have less support
available to manage or monitor
events. From our point of view, we
have support available and have
strict monitoring in place 24/7.
Along with timing, a scam will
normally build in a number of
stages that do not seem to link
until the very last minute. The first
step is to always gain access to
user accounts. As there are many
complex tools in place to stop
the scammer hacking the user
information directly, the easiest
way is to just ask the users for
their login information directly.
Surprisingly, this does work with
the old ‘click on this link to update
your information’ trick. The user is
further fooled as the site mirrors the
expected interface, as it is a direct
copy of the legitimate website. An
extra step used to stop the user
thinking something is wrong is
when after the first attempt to
enter your
more legitimate is the adding
of comments stating that the
company is running some type of
sale before re-locating or closing
down. Finally, the contact details
have been updated to redirect
enquires back to the scammer.
Now the spider web is set.
As the purchasers
start to make
contact, the
scammer
feeds off
the urgency
other buyers that they have been
involved in a scam.
The golden rule is to never
reply to an email or click on a
link requesting your username
and details. No online trader or
bank will ever ask you to do this
and if you have any doubt call
the company requesting the
information directly. If it is found to
be a scam, this kicks off a number
of processes around getting the
website removed and efforts
in locating where the scammer
operating from. This also
allows any other users
who could have been
impacted to be contacted.
How do I identify a
phishing scam?
“ as the scam unfolds you find
that you are only part of a bigger
and more complex picture”
username and password , the
second attempt works and redirects
you back to the legitimate website.
With this user information,
and generally before a weekend,
the user information is used to
change the following. The price
is reduced only enough to make
the items look attractive, but not
enough to raise the suspicion
of the purchaser. This leaves the
purchaser with a sense of urgency
around closing the deal. What
makes the pricing look even
of the buyer and states that they
have had a number of enquires
and to hold or secure the item a
holding fee or deposit is required
to be paid immediately. Stung! By
the time it has come to the surface
of what is happening, it is too late
for some. Nowadays the scammers
are heading back for a second go
and enquiring about the vehicles
that they have changed and
updated. By doing this they then
see when they have been sprung,
as they are notified along with the
 You receive an email from
a company that you currently
do business with and they are
requesting you username and
password;
 The email could state your
name or company. However
generally they state Sir or
Madam;
 The email warns that you have
been a victim of fraud;
 The email says that you need
to confirm or enter a new
password;
 The HTML tags behind the links
on the email will reveal that the
underlying URL usually does
not link to a page within the
authentic domain;
 You did not initiate contact with
the sender or may not have
expected to receive it;
 The email contains grammatical
errors and spelling mistakes.
Always be on your guard.
www.autofile.co.nz | 15
disputes
Jaguar engine destroyed on drive
home from dealer’s yard
The Case:
Background
The Decisiodn:not determine
On 25 May 2011 Mrs Attar bought
a 2004 Jaguar X-Type V6 sight
unseen by internet auction from
Online Vehicle Auctions Limited
trading as Oval.Co.NZ for $9,000.
The purchaser says that the vehicle
overheated soon after it was first
being driven by her on 28 May
and that its head gasket has blown
and the engine is suspected of
being damaged. The purchaser
claims against the trader cost for
the estimated cost of repairs of
$5,267.83.
The trader says that the vehicle
was supplied by auction and that
accordingly the purchaser has
no remedy under the Consumer
Guarantees Act.
The case
The purchaser bought the vehicle
by auction on Trade Me for $9,000
on the night of 25 May, and paid
for it by bank transfer on 27
May. The vehicle was advertised
as having travelled 81,500kms,
though the warrant of fitness
issued on 11 May 2011 recorded
the odometer as 81,556kms.
The next day the purchaser and
her husband went to the trader’s
premises to collect the vehicle.
Neither the purchaser nor the
trader was able to say what the
vehicle’s odometer was at the time
the vehicle was supplied to the
purchaser. The purchaser signed
the CIN and then drove the vehicle
about 6kms looking for a garage
in Penrose to fill the vehicle’s
fuel tank. Neither the purchaser
nor her husband checked the
water or oil levels in the vehicle.
After putting fuel in the tank
the purchaser drove the vehicle
towards her home in Albany.
The purchaser gave evidence
law bd
. 16 | www.autofile.co.nz
that after she had crossed the
Auckland Harbour Bridge the
vehicle’s engine warning light
lit up. The purchaser says she
continued to drive the vehicle for
two or three minutes after the
red light came on, to get it off
the motorway, but the vehicle
stopped in the middle of the road
and had to be pushed to the side
of the road.
Her son arrived, lifted the
bonnet and found there was no
water in the radiator. A litre of
water was poured in, and the car
driven some 500m home.
The next day the vehicle was
towed to North Shore Autocentre.
A compression test and Tee-Kay
test confirmed blown head gasket
as well as possible damage or
weakening of piston rings, and a
quote was given for $5,267.83 to
remove the engine and replace
with a used engine.
The purchaser sent the
trader two emails, one on 3 June
notifying the trader of the head
gasket and asking the trader for a
refund of the purchase price.
The purchaser still did not
receive any response from the
trader she placed negative
feedback on TradeMe. The trader
responded immediately by telling
her it would not consider her claim
until she removed the feedback
which she did. The trader then
sent her an email informing her
that the vehicle was sold “as is
where is” and he was unable to
assist her.
The trader’s director Mr Boult
says that the trader sold the vehicle
to the purchaser unregistered and
the purchaser was therefore unable
to use the vehicle in that condition
without first registering it. He
claimed that as a consequence of
that the vehicle sold to the
purchaser was not roadworthy
as a vehicle.
Mr Boult said that his
mechanic examined the vehicle
and that it had been driven
with insufficient fluids which
had resulted in the engine being
“cooked”. He says the purchaser
should have stopped the vehicle
as soon as she saw the warning
light instead of continuing to
drive the vehicle.
The finding
The buyer ‘cooked’ the engine
driving home from the trader’s
premise without water in the
radiator after a hose split.
The tribunal coul
whether the hose was split when
the vehicle was sold, but ultimately
determined the purchaser caused
the damage to the vehicle.
At:
the Motor Vehicle Disputes
Tribunal, Auckland
However the Tribunal does not
have any evidence that the hose
was leaking when the vehicle was
supplied to the purchaser.
In the absence of any fault
at the time of sale which made
the vehicle commercially
unsaleable, the tribunal could
not find that the vehicle was not
of merchantable quality. With
regret the tribunal dismissed the
purchaser’s claim.
The tribunal acknowledged that
unfortunately for the purchaser
the CGA did not apply, however
the Sale of Goods Act (SOGA) was
relevant, particularly the implied
conditions as to quality or
fitness, where there is “an implied
condition that the goods shall be
The purchaser claimed the vehicle
of merchantable quality”.
overheated soon after delivery
The time at which
and the head gasket had blown
merchantable quality is to be
and the engine suspected of
assessed is the time of the supply
being damaged. The purchaser
of the goods to the buyer.
claimed estimated costs of repairs
Mr Ash Ladna, the mechanic
$5,267.83. The dealer argued
at North Shore Autocentre
that the vehicle was supplied by
gave evidence to the tribunal
auction and the Act did not apply.
for the purchaser by telephone
Surprise! Surprise! The
conference call during the
application was dismissed. I
hearing and confirmed that the
believe in this particular case
cause of the loss of coolant was a
all the usual matters were
split hose on top of the cylinder
considered by the tribunal and at
head. Mr Ladna said that he
the end of the day the purchaser
could not say if the leak from
failed because she continued to
the hose was present at the time
drive the vehicle after the engine
of sale nor was he able to say
warning light was on and that
if there was any evidence of an
contributed to the damage.
existing or previous water leak
There are other factors about
from the hose.
the overheating but the dealer
The tribunal considered that
was lucky to avoid any difficulty
the hose which started to leak
Bruce Dell Law – “problem solver”
in this particular case, I believe
on the purchaser’s journey from
because
the purchaser
continued
the trader’s
premises
to
her
home
autofile are delighted to have Bruce
as part
of the Autofi
le team advising o
to drive
vehicle
after
the Tribunal ca
was probably
and
a
on the perished
lessons to
bein
learned
from
past the
Motor
Vehicle
Disputes
If you require
Bruce a call
09 570 5036
wason
apparent.
poor condition
at thelegal
timeadvice
of sale.give problem
Bruce Dell’s comment
Bruce Dell Law – “problem solver”
Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has
handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North
autofile are delighted to have Bruce as part of the Autofile team advising our readers on past Motor
Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036
disputes
Purchaser complains about
transmission of new Dodge Nitro
The Case:r complained about
Background
n:
The Decisio
was sympathetic to
On 23 December 2010 Grant
Weaver and Janet Limmer bought
a Dodge Nitro for $41,990 from
Continental Car Services Ltd. They
allege it has a faulty transmission
that the trader has been unable to
fix, and wish to obtain a refund.
The trader’s position is that
the Dodge does not have a faulty
transmission, that the problem
complained of is a characteristic
of the Dodge transmission and is
not a fault.
The case
The Dodge was purchased on 23
December 2010 for $41,990, and
was essentially a new vehicle with
an odometer reading of only 800
kilometres. Weaver’s evidence
was that he took it for a test drive
around the block, did not notice
any problems and decided to
buy it just before Christmas 2010.
Driving the Dodge to Gisborne,
he noticed a problem with the
transmission. He described this as
the transmission jerking – he said
it felt like the brakes were coming
on and off when the Dodge was
travelling at speeds between 90
and 100 kilometres per hour.
In early February 2011 Weaver
arranged with the Service Manager
to take the Dodge back to the
trader. The Dodge was scanned but
exhibited no fault code. Weaver
uplifted the Dodge and drove it
until July 2011 in the hope that the
problem would resolve itself.
In July Weaver took the Dodge
back to the trader. The odometer
reading was 4,500 kilometres and
the problem had not improved.
Weaver told the tribunal that he
was advised by the mechanic who
looked at it that the problem had
been evident in a lot of Dodge
vehicles but that they were unable
to fix the problem. Weaver’s
understanding was that the jerking
is caused by the lock-up torque
converter coming in and out of
gear at specific speeds (around 90
to 100 kilometres per hour).
Prior to the hearing the tribunal
issued directions to the parties,
and the purchaser was instructed
to produce evidence from a
recognised transmission specialist
on the reported fault including
details of the cost of repairs.
Weaver chose not to respond
to that direction; instead he relied
on evidence from Bruce Taylor of
Autocare Pukekohe, who, although a
qualified mechanic with considerable
experience, was not a transmission
specialist. Taylor has road tested the
Dodge and advised that he suspected
a problem in the transmission. He
described the symptoms as a surge
almost like an engine miss.
When questioned, Taylor
conceded that he had not had any
previous dealings with a Dodge
transmission, he had not heard of a
“torque converter clutch” and that
it was his practice to outsource
any transmission repairs to a
transmission specialist.
Metcalfe gave evidence for
the trader. He did not accept that
Weaver was told by any of the
trader’s staff that the problem
he was experiencing had been a
problem in a lot of Dodge vehicles
and that it was unable to be fixed.
Metcalfe’s strong submission was
that the problem Weaver perceived
with the Dodge was a performance
characteristic and not a fault.
Metcalfe told the tribunal that the
trader had sold around 150 vehicles
with this transmission since 2007
and had not received any other
negative feedback or complaints.
The tribunal heard from
Bryan Keating, the National
Technical Advisor for Chrysler.
His position was that the problem
raised by Weaver was not a fault
but rather a characteristic of the
Dodge and is “considered normal
operation of the torque converter
lock up clutch”.
He explained the characteristic
in the following terms: “This
characteristic is commonly referred
to as ‘fishbite’ and is caused by the
torque convertor clutch momentarily
engaging and disengaging. This
operation predominantly happens
in fourth gear on a level surface.
The torque converter clutch will
disengage momentarily when an
increase in engine load is sensed
by the engine control module, such
as beginning to go up a hill or the
throttle pressure is increased […]”
The finding
Having considered all the available
evidence the tribunal was not
persuaded that the purchasers
had established that there had
been a failure in the guarantee of
acceptable quality. The tribunal
accepted Weaver’s evidence as to
the experience he had with the
operation of the Dodge and in
particular the torque converter
clutch. The tribunal also accepted
his evidence that he has been
told that this has been an issue for
other Dodge owners (and in that
regard preferred his evidence to
that of Metcalfe) but unfortunately
that in itself was not sufficient to
establish that there was a fault
with the transmission.
The tribunal considered that there
was no evidence to suggest that the
transmission was not fit for purpose,
safe or durable. In the absence of
any specialist evidence to support
The purchase
transmission jerking between 90
and 100km, while the trader said this
was normal functioning.
The Tribunal
the purchaser’s position but did
not believe that he had provided
specialist evidence, as he had been
instructed.
At:
the Motor Vehicle Disputes
Tribunal, Auckland
the claim that the mode of operation
of the transmission was defective,
the tribunal was not prepared to
find that it is, on the basis of the
subjective opinions of two essentially
unqualified witnesses.
However the tribunal did not
accept the trader’s argument that
a design characteristic cannot be a
fault. There may well be a design
flaw in a vehicle that could amount
to a failure in the guarantee of
acceptable quality, for example
where a particular component in
a car fails much earlier than could
reasonably have been expected
because of poor design. Given the
lack of evidence in this case, the
purchaser’s application must fail.
Bruce Dell’s comment
The purchasers alleged the vehicle
had a faulty transmission which
the dealer was unable to repair.
The purchasers tried to return the
vehicle and obtain a refund.
The dealer argued that there
was no fault with transmission but
that it was idiosyncratic of Dodges.
The usual issues were considered
and it was found that the vehicle
could not be rejected because
there was not sufficient evidence
to establish that the Dodge failed
the guarantee of acceptable quality
when it was sold.
It would seem to me that neither
party provided specialist evidence
and accordingly the purchaser’s
application was dismissed.
Autofile is now published twice per month and sent COMPLIMENTARY to over
1400 auto industry and associated businesses throughout New Zealand
If this is your target market - wE REACh IT
The voice of the auto industry
www.autofile.co.nz | 17
industry statistics
Around the country
Total New Cars
Car sales - October 2011
Total Used Cars
6267 2010: 6958 NEW: 84
Used:
114
Whangarei
 27.6%
2010: 118  3.4%
Thames
Auckland
 16.1%
2010: 3445  10.2%
NEW: 320
Used:
336
NEW: 127
NEW: 5
NEW: 11
Used:
21
12
84
NEW: 177
2010: 140
Used:
2010: 291
125
Rotorua
NEW: 127
Used:
66
49
Gisborne
Wanganui
2010: 40  2.5%
2010: 45  8.9%
 26.4%
 28.5%
2010: 25
2010: 79
NEW: 48
2010: 23
Used:
2010: 41
35
Napier
Palmerston North
2010: 107  18.7%
2010: 164  23.8%
NEW: 123
2010: 99
Used:
2010: 165
121
Masterton
Nelson
2010: 39  30.8%
2010: 135  37.8%
NEW: 42
2010: 23
Used:
2010: 30
34
Wellington
Westport
2010: 3  66.7%
2010: 8  50.0%
NEW: 450
2010: 424
Used:
2010: 577
628
Blenheim
Greymouth
2010: 12  8.3%
2010: 29  27.6%
NEW: 62
2010: 27
Used:
2010: 26
22
Christchurch
Timaru
Oamaru
Dunedin
2010: 170
NEW: 78
2010: 44
Used:
2010: 81
76
2010: 72
2010: 9
2010: 102
220
2010: 882
793
2010: 25
54
2010: 7
Used:
2010: 1147
Used:
Used:
Used:
15
NEW: 778
NEW: 48
NEW: 13
NEW: 123
Invercargill
 408.0%
 16.5%
 108.7%
 14.6%
 24.2%
 26.7%
 82.6%
 13.3%
 6.1%
 8.8%
 129.6%
 15.4%
 32.2%
 10.1%
 92.0%
 25.0%
 85.7%
 66.7%
 20.6%
 29.4%
 77.3%
 6.2%
Our premium online service. SIGN UP FOR FREE!
BECOME A MEMBER AND ENJOY THESE EXCLUSIVE BENEFITS:
✓ Hundreds of vehicles! Two shipments each month.
✓ Exclusive opportunities to buy direct from Japan.
✓ Get the best prices, based on Japan direct pricing, in $NZD.
✓ Get exclusive access to AutoTerminal’s latest purchases.
✓ View a wider range of vehicles, including AutoTerminal’s
✓ Buy with confidence! Our vehicles are risk-free, with a
in-transit and unshipped vehicles.
seven day right of return.
✓ We are New Zealand owned and operated, and offer a full New Zealand-based support service.
18 | www.autofile.co.nz
208
New Plymouth
 7.4%
2010: 115  0.9%
NEW: 41
NEW: 51
Tauranga
 3.0%
 9.4%
2010: 68
114
Used:
Used:
2010: 53
48
Hamilton
 30.1%
2010: 423  20.6%
Used:
Used:
2010: 33
Used:
2010: 246
NEW: 73
Used:
 9.9%
NEW: 34
2010: 3116
3092
 7.5%
2010: 5866 2010: 116
NEW: 2613
Used:
5428
NZ SALES OFFICE
Telephone: +64 9 257 0050
Email: [email protected]
NZ CUSTOMER SERVICE CENTRE
Telephone: +64 9 257 0070
Email: [email protected]
www.autoterminal.com
sHIppING servICes
TO NeW ZeALAND AND AUSTRALIA FROM JAPAN, ChINA AND kOReA
Armacup pioneered the used vehicle shipping
industry from Japan to New Zealand in 1987 and
in 1989 introduced the first dedicated car carrier.
Today Armacup continue to offer an excellent cost
effective service to New Zealand car dealers with
benefits such as:
LATEST SCHEDULE
spring sky V4
loaDinG
arriVinG
DOOR TO DOOR SERVICE INCLUDING
 MAF Border inspection

Odometer certification

Digital Photography for prior sales in NZ

NZ Customs clearance

Delivery Nationwide

Insurance
hoegh Xiamen V7
loaDinG
arriVinG
Osaka
Yokohama
Auckland
Wellington
Lyttelton
arriVinG
Osaka
Nagoya
Yokohama
Auckland
Wellington
Lyttelton
Falstaff V5
loaDinG
0800 ARMACUP (276 2287)
or 09 303 3314
EMAIL [email protected]
www.armacup.co.nz
PHONE
30 oct
31 oct
25 nov
27 nov
28 nov
hoegh chennai V7
loaDinG
GENEROUS REWARDS PROGRAMME
 Ship your motor vehicles on
Armacup vessels and you can
earn seamiles points for air travel
(only applicable to used imports)
Osaka
28 oct
Nagoya
29 oct
Yokohama 30 oct
Auckland 12 nov
arriVinG
Osaka
Nagoya
Yokohama
Auckland
Wellington
Lyttelton
15 nov
16 nov
17 nov
29 nov
1 Dec
2 Dec
28 nov
29 nov
30 nov
23 Dec
26 Dec
27 Dec
PIONEERS AND INNOVATORS TO THE
USED VEHICLE IMPORT MARKET
used import sales
Used imports vs
New Zealand new
I
an Charlton at Advantage
Cars used to sell only used
imports, but now swears by
New Zealand new vehicles.
Five years ago his yard was
half Japanese imports, half
European imports, but the
Euros went since repair costs
consistently eroded margins.
However the switch to buying
cars locally came in part because a
number of import wholesalers at the
time started selling direct to public.
Another advantage says
Charlton is that cars are on the
yard quicker.
“[Importing] you pay for 30%
of the car’s value, which is money
gone out of the business. Six
weeks later the cars turn up and
they’re two weeks going through
the system. So literally you’ve got
a car that you bought eight weeks
ago that’s just hit the yard, and
a lot can change in eight weeks,
the market can come back, the
BMW you paid $10,000 for import
might only be worth $11,000
retail now,” he says.
“I just found that it wasn’t
worth the risk.”
Charlton says that there are
certain advantages selling New
Zealand cars, though certain
shoppers avoid them.
“We found that the public
generally wants NZ stock, they
want something where they
know the history and they know
the car.
“With NZ new vehicle you tend
to get a lot later models, while
imports you tend to get a lot
lower kms. If a buyer has $10,000
they’d probably get an ’06-’07
New Zealand car done 100,000
kms, or an ’03-’04 import done
50,000km.”
Charlton says that some
buyers are kilometre buyers who
gravitate to imports, while other
buyers are happy to buy a car
with high mileage, they just want
as late a model as possible.
20 | www.autofile.co.nz
In terms of switching business
models, Charlton says it took them
a good 18 months to transition
between imports to NZ new cars.
“If you’re an import dealer and
you’re known for imports in your
market, and you all of a sudden
start stocking New Zealand new
cars the public won’t come to you.
“It’s not just switching a light
bulb. The buyers expect imports,
your sellers sell imports, and
you’ve got a name in the industry.”
He says that if a used importer
puts a NZ new car on their yard,
such as a Ford Focus, odds are it
won’t sell quickly.
“People will walk on their yard
and they’ll be looking at Japanese
imports such a Mazda Axela with
all the fruit, low ks, great colour,
and then there’s a Plain Jane NZ
new car, they’ll find most of their
staff will sell the imports and the
New Zealand new seems to stick
and becomes old stock.
“It takes a whole mindset to go
Kiwi only, we’ve been three and
a half years and it really works,
we’ve got a name for ourselves
and we sell good cars.”
One issue that Charlton notices
is that many buyers compare a
price of a NZ new vehicle with a
Japanese import they’ve seen.
In many cases the import has a
smaller engine or lower spec.
“We have to educate people,
such as on the Suzuki Swift. We
get a GLX Suzuki Swift which is
top of the line with airbags, and
people will be telling us ‘I can buy
one for $12,000 done less k’s’ and
it’s a 1.3 litre Japanese import
with black door handles and base
model. We spend a lot of time
fighting an uphill battle.”
“ We have to educate people, such as
on the Suzuki Swift. We spend a lot
of time fighting an uphill battle”
numbers are long gone. We find that
we don’t sell as many as we once did,
but we tend to make a little more out
of each car.”
McMillan says it’s particularly
important when making a
sale these days, to ensure that
everything is right in terms of the
presentation. He says if buyers are
impressed with quality over the
other cars they’ve seen they’re
happy to pay a “sensible price”.
Saying that, he finds that
the market is less price oriented
than it once was, and believes
with sales numbers down it’s
about focusing on making similar
money on less volume.
However his experiences with NZ
new stock is that it doesn’t add up.
“The problem with New
Zealand new stock is that you
can’t buy it at a sharp enough
price to then add in all the
reconditioning costs to get it on
the yard and sell it, and make a
margin that you were used to
making on a Japanese import car.
“Once upon a time you could
buy stock that you could justify
putting on the yard, but anything
I ever price now – ex-lease cars –
they pretty much do sell for retail
in my opinion.”
The costs and outlay of
reconditioning also discourages him.
“I think that a lot of stock in
New Zealand, even the late model
stuff, by the time you look at
buying it, it needs a windscreen,
the whole front half of it needs
painting because of road chips,
and the wheels have all be
kerbed. Even on a two-three year
old car you might need to spend
$2,000 on reconditioning.”
McMillian says with the outlay
and perceived margin, he’d
just as happily retail a cheaper
trade-in on the yard than a
more expensive ex-lease vehicle
requiring extra work.
Used Import Passenger Registrations - 2010-2011
8500 8000 2010 2011 7500 7000 6500 Dean McMillan at Evolution
Motors in Napier says that the market
this year has been fairly good.
“It hasn’t been that disappointing.
Like everyone we’d love to do a little
bit more, but the days of record
6000 5500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec used import sales
Used Passenger Vehicle Sales by Make - October 2011
Used Passenger Vehicle Sales by Model - October 2011
Make
Model
Oct ‘11
Oct ‘10
+/- %
Oct
‘11 Mkt
Share
2011
Full
Year
2011
Mkt
share
27.7%
Toyota
Corolla
297
465
-36.1
4.7%
3819
5.8%
10522
15.8%
Mazda
Atenza
266
241
10.4
4.2%
2572
3.9%
14.4%
8523
12.8%
Subaru
Legacy
263
349
-24.6
4.2%
3167
4.8%
-9.6
10.9%
6980
10.5%
Toyota
Estima
258
268
-3.7
4.1%
2563
3.9%
576
-22.7
7.1%
5325
8.0%
Toyota
Vitz
209
235
-11.1
3.3%
2314
3.5%
346
398
-13.1
5.5%
3526
5.3%
Mazda
Demio
171
171
0.0
2.7%
1640
2.5%
Bmw
249
277
-10.1
4.0%
2806
4.2%
Mazda
Axela
159
129
23.3
2.5%
1522
2.3%
Volkswagen
184
184
0.0
2.9%
1940
2.9%
Honda
Accord
145
133
9.0
2.3%
1230
1.9%
Suzuki
142
147
-3.4
2.3%
1587
2.4%
Bmw
3 Series
136
185
-26.5
2.2%
1664
2.5%
Ford
135
115
17.4
2.2%
1320
2.0%
Honda
Stream
129
142
-9.2
2.1%
1219
1.8%
Mercedes-Benz
90
52
73.1
1.4%
696
1.0%
Toyota
Ist
128
89
43.8
2.0%
1021
1.5%
Audi
87
63
38.1
1.4%
901
1.4%
Honda
Odyssey
127
159
-20.1
2.0%
1439
2.2%
Chevrolet
58
40
45.0
0.9%
522
0.8%
Subaru
Impreza
124
142
-12.7
2.0%
1412
2.1%
Peugeot
50
35
42.9
0.8%
488
0.7%
Mazda
Mpv
122
91
34.1
1.9%
969
1.5%
Hyundai
32
40
-20.0
0.5%
326
0.5%
Nissan
Wingroad
113
129
-12.4
1.8%
1428
2.2%
Volvo
29
29
0.0
0.5%
305
0.5%
Nissan
Primera
111
193
-42.5
1.8%
1410
2.1%
Chrysler
27
32
-15.6
0.4%
309
0.5%
Nissan
March
109
72
51.4
1.7%
1060
1.6%
Land Rover
23
17
35.3
0.4%
185
0.3%
Nissan
Bluebird
104
145
-28.3
1.7%
1041
1.6%
Jaguar
19
17
11.8
0.3%
259
0.4%
Toyota
Funcargo
103
70
47.1
1.6%
938
1.4%
Mini
19
6
216.7
0.3%
141
0.2%
Mitsubishi
Lancer
99
116
-14.7
1.6%
1007
1.5%
Isuzu
15
14
7.1
0.2%
107
0.2%
Suzuki
Swift
96
94
2.1
1.5%
994
1.5%
Jeep
12
12
0.0
0.2%
113
0.2%
Toyota
Ipsum
94
112
-16.1
1.5%
1071
1.6%
Alfa Romeo
10
13
-23.1
0.2%
112
0.2%
Honda
Fit
90
87
3.4
1.4%
965
1.5%
Holden
9
11
-18.2
0.1%
111
0.2%
Toyota
Altezza
88
117
-24.8
1.4%
972
1.5%
Opel
9
7
28.6
0.1%
124
0.2%
Nissan
Tiida
82
88
-6.8
1.3%
713
1.1%
Daihatsu
8
8
0.0
0.1%
83
0.1%
Volkswagen
Golf
80
95
-15.8
1.3%
950
1.4%
Dodge
8
4
100.0
0.1%
54
0.1%
Honda
Civic
76
112
-32.1
1.2%
950
1.4%
Lexus
7
6
16.7
0.1%
62
0.1%
Nissan
Elgrand
72
69
4.3
1.1%
696
1.0%
Smart
6
3
100.0
0.1%
26
0.0%
Toyota
Caldina
68
84
-19.0
1.1%
780
1.2%
Cadillac
5
1
400.0
0.1%
42
0.1%
Nissan
Skyline
64
98
-34.7
1.0%
737
1.1%
Citroen
5
1
400.0
0.1%
29
0.0%
Mazda
Premacy
57
65
-12.3
0.9%
478
0.7%
Plymouth
5
1
400.0
0.1%
14
0.0%
Mitsubishi
Colt
53
71
-25.4
0.8%
563
0.8%
Renault
5
3
66.7
0.1%
52
0.1%
Mazda
Tribute
52
85
-38.8
0.8%
565
0.9%
Porsche
4
15
-73.3
0.1%
46
0.1%
Toyota
Platz
48
46
4.3
0.8%
575
0.9%
Kia
3
1
200.0
0.0%
23
0.0%
Toyota
Opa
47
33
42.4
0.7%
380
0.6%
Lotus
3
0.0%
10
0.0%
Toyota
Rav4
47
58
-19.0
0.7%
563
0.8%
Mg
3
2
50.0
0.0%
23
0.0%
Bmw
5 Series
44
36
22.2
0.7%
439
0.7%
Saab
3
8
-62.5
0.0%
43
0.1%
Mitsubishi
Pajero
44
55
-20.0
0.7%
542
0.8%
Vauxhall
3
1
200.0
0.0%
16
0.0%
Ford
Escape
43
24
79.2
0.7%
344
0.5%
Other
21
37
-43.2
0.3%
268
0.4%
Other
1849
2005
-7.8
29.5%
19674
29.6%
Total
6267
6958
-9.9
100.0%
66386
100.0%
Total
6267
6958
-9.9 100.0%
2011 Full
Year
2011 Mkt
share
26.4%
18367
-22.3
15.1%
871
3.7
681
753
Subaru
445
Mitsubishi
Make
‘11
+/- % MktOct
Share
Oct ‘11
Oct ‘10
Toyota
1656
1938
-14.6
Nissan
948
1220
Mazda
903
Honda
66386 100.0%
www.autofile.co.nz | 21
new vehicle sales
[continued from page 1]
Day of reckoning will come - Davis
22 | www.autofile.co.nz
Age Distribution of NZ Fleet (Dec 2009)
In 2009 22% of all light vehicles on NZ roads were 1995-1997 model year, while
36% of all the Japanese-used vehicles were 1995-1997 model year
Theoretical Age Profile of a Developed Country Vehicle Fleet
Percent
in the early ’90s.”
Speaking at a recent vehicle
launch, Davis created a stir by
remarking on the ‘great used import
experiment’, which he said had been
a “disaster” in terms of improving
the age of the fleet, and has had
consequences in terms of safety and
environmental technologies.
“Some people might interpret
my comments as bashing the
used import trade, but far from it.
Toyota NZ is involved in the used
import business as well as the new
car business.”
Davis says that there is “no
question” that used imports have
bought benefits, such as a much
wider variety of cars on the market,
and a decline in the need for
motorcycles to be used as transport.
But he maintains that in terms
of reducing the age of the fleet,
imports have been a failure, in
part due to the nature of the
Japanese industry.
“Shaken was an artificial
construct to create a very large
domestic car market back in the
1960-70s, which gave them enough
volume from which to build export
business,” says Davis.
Japanese consumers were
rapidly passing the cars on, and
New Zealand was positioned to
catch them.
“When we chose to bring in
used imports we in effect imported
Japanese depreciation rates, which
were artificially high to stimulate
their new car business.
“Everybody said they’d bring
the age of the fleet down, and so
New Zealand will be much better
off. But actually it’s proved to be
the reverse, which is the opposite
of what a lot of commentators
suggested, although to be fair
Toyota warned the Government
and treasury about it extensively
in the 1980s, but sadly we were
outvoted”, says Davis.
He says the key for improving
new vehicles sales is to strengthen
the New Zealand economy through
developing our export market, and
100
90
80
70
60
50
40
30
20
10
0
100% of vehicles enter new, then slowly leave due to accidents, then for
100% of reasons.
vehicles
enterIain
new,
then slowly leave
mechanical
Sources:
McGlinchy/MoT
due to accidents, then for mechanical reasons.
believes our wealth is progressively
falling behind other western
economies.
“A significant impact on the
health of our economy is how
exports do, and traditionally we
haven’t grown our exports as much
as we’ve grown our imports, and so
it’s been a struggle.
“It’s not a matter of one year
of good performance, this is a
sustained economic wealth issue.
New Zealand car prices are pretty
competitive compared with other
countries around the world, but if
you look at our GDP per person,
it’s about US$30,000, whereas
Australia is about US$45,000.
“Australia has a car market about
12 times larger than New Zealand’s
car market, but our population is
only five times bigger. That’s the
guts of the new car versus used car
issue,” says Davis.
Many other Western countries
benefit from government subsidies
where there is local manufacturing
industry support. Davis concedes
that a lack of direct Government
policy may be a small factor in the
age of the New Zealand fleet. Nevertheless he points out that
vehicle prices in New Zealand are
comparatively low.
“I think the Treasury argument
of the 1980s and ’90s was that if
you take off tariffs and remove local
manufacture, which is what they
did, the car prices will in effect fall
and more people will be able to buy
new cars.
“And car prices did fall, but
because of the overall health of the
economy we struggle to be able to
buy new cars.”
Davis believes that from an
environmental perspective a
scrappage incentive would be
good, but believes that the most
effective thing that Government
could do for scrappage would be to
raise petrol prices.
“It’s an unpalatable thing for
people to hear, I’ve made that
call in the past and been roundly
criticised for it, but it’s the easiest
market mechanism because it
affects people’s decisions in terms
of fuel economy, efficiency of
their old car versus new cars, and
so on.
“The trouble with scrappage
regimes is how do you pay
for them? And Government is
stretched financially anyway. Even
if you had a scrappage regime
you’d want to pay for it with an
additional petrol tax.”
New Passenger Registrations - 2010-2011
7000 6500 2010 2011 6000 5500 5000 4500 4000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec new vehicle sales
New Passenger Vehicle Sales by Model - October 2011
New Passenger Vehicle Sales by Make - October 2011
Make
Model
Oct ‘11
Oct ‘10
+/- %
Oct
‘11 Mkt
Share
2011
Full
Year
2011
Mkt
share
16.2%
Toyota
Corolla
528
852
-38.0
9.7%
2984
5.6%
5289
10.0%
Hyundai
i30
309
223
38.6
5.7%
1954
3.7%
11.0%
5379
10.1%
Toyota
Yaris
305
119
156.3
5.6%
1422
2.7%
-37.1
8.6%
4831
9.1%
Suzuki
Swift
177
201
-11.9
3.3%
2575
4.9%
443
-17.6
6.7%
4193
7.9%
Mazda
Mazda3
167
226
-26.1
3.1%
1717
3.2%
356
352
1.1
6.6%
4164
7.8%
Toyota
Rav4
167
176
-5.1
3.1%
1103
2.1%
Mitsubishi
241
230
4.8
4.4%
2601
4.9%
Holden
Commodore
165
412
-60.0
3.0%
2004
3.8%
Nissan
201
200
0.5
3.7%
2343
4.4%
Holden
Captiva
152
97
56.7
2.8%
1383
2.6%
Kia
174
162
7.4
3.2%
1995
3.8%
Ford
Territory
145
57
154.4
2.7%
816
1.5%
Honda
137
125
9.6
2.5%
2321
4.4%
Holden
Cruze
138
85
62.4
2.5%
1210
2.3%
Volkswagen
134
138
-2.9
2.5%
2227
4.2%
Toyota
Aurion
132
32
312.5
2.4%
358
0.7%
Subaru
103
121
-14.9
1.9%
1321
2.5%
Hyundai
Santa Fe
116
69
68.1
2.1%
953
1.8%
Audi
96
73
31.5
1.8%
1161
2.2%
Mitsubishi
Lancer
89
72
23.6
1.6%
402
0.8%
Bmw
91
59
54.2
1.7%
1121
2.1%
Toyota
Highlander
89
142
-37.3
1.6%
937
1.8%
Mercedes-Benz
83
53
56.6
1.5%
826
1.6%
Mazda
Mazda6
87
123
-29.3
1.6%
1073
2.0%
Dodge
51
29
75.9
0.9%
425
0.8%
Ford
Falcon
83
400
-79.3
1.5%
1200
2.3%
Ssangyong
43
13
230.8
0.8%
373
0.7%
Ford
Focus
82
188
-56.4
1.5%
795
1.5%
Lexus
41
32
28.1
0.8%
419
0.8%
Ford
Fiesta
80
40
100.0
1.5%
1006
1.9%
Peugeot
40
59
-32.2
0.7%
670
1.3%
Hyundai
i20
78
2
3800.0
1.4%
260
0.5%
Mini
29
36
-19.4
0.5%
267
0.5%
Holden
Barina
75
111
-32.4
1.4%
211
0.4%
Skoda
27
37
-27.0
0.5%
462
0.9%
Ford
Mondeo
73
54
35.2
1.3%
1000
1.9%
Jeep
26
19
36.8
0.5%
325
0.6%
Kia
Sportage
65
64
1.6
1.2%
668
1.3%
Land Rover
26
28
-7.1
0.5%
343
0.6%
Hyundai
ix35
61
37
64.9
1.1%
770
1.5%
Alfa Romeo
21
10
110.0
0.4%
143
0.3%
Mitsubishi
Outlander
60
57
5.3
1.1%
881
1.7%
Citroen
19
13
46.2
0.4%
157
0.3%
Honda
Jazz
59
39
51.3
1.1%
895
1.7%
Porsche
12
6
100.0
0.2%
127
0.2%
Nissan
Qashqai
58
63
-7.9
1.1%
631
1.2%
Chery
10
0.2%
129
0.2%
Mazda
Mazda2
48
44
9.1
0.9%
623
1.2%
Fiat
10
0.2%
75
0.1%
Suzuki
Splash
48
0.9%
115
0.2%
0.2%
74
0.1%
Suzuki
Sx4
48
37
29.7
0.9%
507
1.0%
2011 Full
Year
2011 Mkt
share
24.6%
8589
13.5
12.1%
719
-17.0
467
743
Mazda
365
Suzuki
Make
‘11
+/- % MktOct
Share
Oct ‘11
Oct ‘10
Toyota
1333
1533
-13.0
Hyundai
657
579
Holden
597
Ford
3
233.3
Renault
9
Volvo
5
9
-44.4
0.1%
164
0.3%
Toyota
Camry
47
76
-38.2
0.9%
829
1.6%
Daihatsu
4
11
-63.6
0.1%
52
0.1%
Suzuki
Kizashi
45
41
9.8
0.8%
359
0.7%
Factory Built
4
5
-20.0
0.1%
131
0.2%
Mercedes-Benz
C
43
17
152.9
0.8%
253
0.5%
Great Wall
4
1
300.0
0.1%
96
0.2%
Holden
Epica
41
2
1950.0
0.8%
246
0.5%
Chrysler
3
3
0.0
0.1%
27
0.1%
Kia
Cerato
41
23
78.3
0.8%
386
0.7%
Aston Martin
2
4
-50.0
0.0%
29
0.1%
Volkswagen
Golf
41
38
7.9
0.8%
694
1.3%
Can-Am
2
0.0%
3
0.0%
Mazda
Cx-7
40
48
-16.7
0.7%
542
1.0%
Geely
2
6
-66.7
0.0%
54
0.1%
Mitsubishi
Asx
38
37
2.7
0.7%
571
1.1%
Bentley
1
1
0.0
0.0%
11
0.0%
Subaru
Legacy
33
34
-2.9
0.6%
350
0.7%
Lamborghini
1
0.0%
5
0.0%
Honda
Accord
32
20
60.0
0.6%
464
0.9%
Other
1
11
-90.9
0.0%
127
0.2%
Other
1343
1508
-10.9
24.7%
17902
33.7%
Total
5428
5866
-7.5
100.0%
53049
100.0%
Total
5428
5866
-7.5 100.0%
53049 100.0%
www.autofile.co.nz | 23
The global source
of
vehicles
The pre-owned
global source
of pre-owned vehicles
Theto
global
source of Vehicles
Access
Thousands
of pre-owned
vehicles
The global source
Direct
fromvehicles
UK Auctions
of
pre-owned
Access to Thousands of Vehicles
Access
to
Thousands
ofVehicles
Vehicles
Direct
from UK of
Auctions
Access
to Thousands
Direct
UK Auctions
Auctions
Direct from
from UK
IBC now offers you the opportunity to bid and purchase from auctions in the UK with access to major UK auctions daily.
More Choices!
Thousands of vehicles are now available from the UK, including all European makes and models - Audi, BMW,
Mercedes, Range Rover, Porsche, as well as a good selection of diesel passenger, SUV, and commercial vehicles.
Quality Vendors!
All vehicles are purchased from nationally recognised UK vendors including all of the major lease companies and the
now
offers
you
theopportunity
opportunity
tochains.
bid and
and purchase
purchase from
the
UKUK
with
access
to major
UK auctions
daily.daily.
respected
national
retail
IBCIBC
now
offers
you
the
to
bid
fromauctions
auctionsinin
the
with
access
to major
UK auctions
Big Savings!
More
Choices!
Choices!
Save
by taking advantage
of low
UK prices
and the from
strong NZD!
now offers More
you
the
opportunity
to bid
and
purchase
auctions in the UK with access to major UK auct
Thousands of vehicles are now available from the UK, including all European makes and models - Audi, BMW,
Thousands
of vehicles are now available from the UK, including all European makes and models - Audi, BMW,
Mercedes, Range Rover, Porsche, as well as a good selection of diesel passenger, SUV, and commercial vehicles.
Mercedes,
Range
Rover, Porsche, as well as a good selection of diesel passenger, SUV, and commercial vehicles.
Price
Guidelines!
IBC has done all of the hard work and can provide you with a market valuation of vehicles landed in NZ to guide you
Quality
Vendors!
More Quality
Choices!
on your
bidding and to help identify the vehicles that will work for NZ!
Vendors!
All vehicles are purchased from nationally recognised UK vendors including all of the major lease companies and the
Thousands
of vehicles
are from
nownationally
available
from UK
thevendors
UK, including
European
and
All respected
vehicles
are
purchased
recognised
including all all
of the
major leasemakes
companies
andmodels
the
national
retail chains.
Strict
Quality
Control!
Mercedes,
Range
Rover,
Porsche,
respected
national
retail
chains. as well as a good selection of diesel passenger, SUV, and commercia
All vehicles are inspected at the auction prior to purchase, and again prior to export. You will receive a full inspection
Big Savings!
report with photos and condition notes prior to export.
Big Savings!
Quality
SaveVendors!
by taking advantage of low UK prices and the strong NZD!
Save by taking advantage of low UK prices and the strong NZD!
Compliance with NZ Rules!
All vehicles
are
purchased
nationally
including
all of
the major lease com
Price
All Guidelines!
bids
are screenedfrom
to make
sure vehicles recognised
are compliable inUK
NZ. vendors
All paperwork
is checked prior
to export!
IBC
has
done
all
of
the
hard
work
and
can
provide
you
with
a
market
valuation
of
vehicles
landed
in
NZ to guide you
respected
national
retail chains.
Price
Guidelines!
your
bidding
and to help identify the vehicles that will work for NZ!
Easy
Access!
IBConhas
done
all of
the hard work and can provide you with a market valuation of vehicles landed in NZ to guide you
You
can
bid
direct
as soon
as youthe
log vehicles
in to IBC!that will work for NZ!
on your bidding and
to help
identify
Big Savings!
Strict Quality Control!
All vehicles
are inspectedof
at the auction prior to purchase, and again prior to export. You will receive a full inspection
Save by
taking
advantage
Strict
Quality
Control!low UK prices and the strong NZD!
report with photos and condition notes prior to export.
Contact [email protected] or your account manager for further information or phone 09 257 0050 and ask for the UK
All
vehicles are inspected at the auction prior to purchase, and again prior to export. You will receive a full inspection
auction team.
report with photos and condition notes prior to export.
Compliance with NZ Rules!
Price Guidelines!
All bids are screened to make sure vehicles are compliable in NZ. All paperwork is checked prior to export!
IBC hasCompliance
done
all of with
the hard
work and can provide you with a market valuation of vehicles landed in N
NZ Rules!
on yourAllbidding
and
to
help
identify
the vehicles
that inwill
for NZ!is checked prior to export!
bids
are
screened
to
make
sure vehicles
are compliable
NZ.work
All paperwork
Easy Access!
You can bid direct as soon as you log in to IBC!
Easy Access!
StrictYou
Quality
Control!
can bid direct as soon as you log in to IBC!
All Contact
vehicles
are inspected at the auction prior to purchase, and again prior to export. You will receive a
[email protected] or your account manager for further information or phone 09 257 0050 and ask for the UK
report
with
photos and condition notes prior to export.
auction
team.
Contact [email protected] or your account manager for further information or phone 09 257 0050 and ask for the UK
auction team.
Compliance with NZ Rules!
All bids are screened to make sure vehicles are compliable in NZ. All paperwork is checked prior to ex
Easy Access!
You can bid direct as soon as you log in to IBC!