Feebate scheme: MTA concerns
The Motor Trade Association (MTA) has raised a plethora of issues with legislation being passed to enact the government’s clean car policies.
The Land Transport (Clean Vehicles) Amendment Bill had its third reading, which is the final stage before royal assent, on February 18.
However, Tony Everett, the MTA’s sector manager – dealers, says many practical aspects of the law are still to be defined, especially when it comes to the roll-out of clean car discount, also known as a feebate scheme, on April 1. And it isn’t making planning easy when it comes to the automotive industry.
“The feebate schedule being based on carbon dioxide [CO2] emissions is clear,” Everett told Autofile Online. “We know the break points where rebates shift to neutrality and when fees apply.”
But motor-vehicle traders are still getting their heads around WLTP 3-phase conversion processes and it has been difficult for importers ordering stock from Japan, although a useful look-up tool is now available on the dealer resources page of the Rightcar website.
“We are expecting changes to the consumer information notice [CIN] to define any rebate or fee,” adds Everett. “We don’t yet know the final content, whether that’s a single drive-away price or price plus a separate definition of any rebate or fee.
“Hopefully, we will know soon. That said, the CIN is required on unregistered used imports but not new, so different declarations will be required for new vehicles.
“We know rebates will be claimed directly from Waka Kotahi by customers post-purchase in their name – as is the case now with rebates for new and used electric vehicles that were launched in July 2021.
“Conversely, fees must be paid before registration. Dealers will have to determine how to handle that. The most obvious mechanism will be to include the fee in the vehicle offer and sales agreement [VOSA] as part of the overall price.”
In addition, the MTA is still awaiting clarification around what will happen with rejection cases despite asking the government back in July 2021 and several times since.
“At this stage, the government hasn’t expressed an intention to claw back the rebate from a customer who successfully rejects a rebated car,” says Everett.
“In the case of fee-attracting vehicles, it seems unlikely the government will refund fees paid by buyers. It remains to be seen if traders face that obligation under the Consumer Guarantees Act. Otherwise, the customer will wear the loss.”
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