www.autofile.co.nz
NOVEMBER 2025
THE TRUSTED VOICE OF NZ’s AUTOMOTIVE INDUSTRY SINCE 1984
Liquidation risk for dealers ‘fairly high’ Bigger players expanding as associations remind struggling businesses to stay compliant with rules
D
ealers who own their premises and larger groups are proving to have the best staying power as the overall number of traders across the new and used markets drops. That’s the view of Larry Fallowfield, sector manager for dealers at the Motor Trade Association (MTA), who says weaker sales in recent times are affecting the number of registered traders still operating. “We’re fully aware of the challenges facing dealers,” he told Autofile. “Last year, we did a series of articles on ideas around what people should and could be doing to survive the tough times. It’s fair to say we all thought the theory was let’s survive to ’25, but it’s now let’s survive through ’25. “Part of the decline in car dealer numbers could be a roll-on from what happened through Covid-19 and it’s not exclusive to the trader space. If you watch the news or read the paper, you’ll often see
Sales of used-car imports have only broken the 8,000-mark once since August 2024
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Crunch time for credit rules p 10 another restaurant or company has gone into liquidation. “Some of the pandemic’s propup funding has kept businesses afloat that perhaps shouldn’t have been afloat anyway.” Fallowfield believes the risk of liquidation for dealers is fairly high at present, but probably no worse than for anybody else who has been in business and is struggling. At least six dealerships across the country have gone into liquidation since the start of 2024
and others have faced legal action to liquidate their businesses. One of those put into liquidation last year was Raynmac Ltd, which traded as Cars R Us from a site in New Lynn, Auckland. The first report from the liquidators states a reason for its fate was poor economic and trading conditions that led to reduced sales turnover. Cooks Trading 2012 Ltd, which traded as Bay City Motors in Timaru, also cited adverse trading conditions as a factor for going into
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