www.autofile.co.nz
JANUARY 2020
THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS
Dealers prepare to change model mix The make-up of used light vehicles on car yards across the country is likely to change in mid-2020, warn experts
S
ome popular models of usedimported cars and vans will become conspicuous by their absence in New Zealand by the middle of this year as the industry feels the impact of new regulations. Greg Hedgepeth, chief executive officer of Turners Cars, is among many in the industry expecting the final phase of the electronic stability control (ESC) rule to have wideranging implications. March 1, 2020, is the cutoff date for used light passenger and goods vehicles with engines of less than two litres in capacity to be border-checked for ESC. It means all light vehicles – new and used – will be on a level playing field with the rule having been progressively applied to other parts of the market over the past six years. Given the vast majority of used imports are border-checked in Japan, the rule means the last of what will be non-compliant stock is likely to arrive in this country
during April and possibly May. It’s widely anticipated major shortfalls for dealers to acquire ever-popular used models – such as Nissan Tiidas, Mazda Axelas, Suzuki Swifts, Honda Fits and Toyota Hiaces – are likely to be visible on yards here from May. However, Hedgepeth warns it will be some time before the full effects of the restriction on used imports will be known. He told Autofile the whole of the industry will eventually have to adapt to the new regulations
because many lower-end models will no longer be viable. “End-users looking to buy smaller imported cars or vans will need to pay higher prices because only more recent variants will have ESC. We’re already adapting our buying.” As for New Zealand’s usedvehicle market, Hedgepeth predicts further consolidation with trader numbers because a reasonable proportion of usedimported stock sold by many dealers will no longer be available. “Some may pivot into a different stock profile but – based on what I’ve heard – others may simply concede, citing ‘it’s all just getting too hard’,” he says. “With dealer numbers dropping and likely to drop further, this represents an opportunity for remaining used-vehicle retailers as there will be less competition in the market. “We will only really have a clear picture by mid-2020 because I suspect there has been some
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