May issue out now

Industry fears have been realised with the Rightcar system causing chaos for dealers.

That’s despite the Ministry of Transport (MoT) knowing carbon dioxide (CO2) emissions ratings for the clean car discount would be wrong. Autofile reveals why in another case of “we told you so”. 

Many problems come down to inaccuracies when converting vehicle emissions to the CO2 testing regime the government wants, which is WLTP-3. 

But international experts warned back in 2014 that such conversions have margins of error – and this was reiterated by the industry last November.

Greig Epps, of the Motor Trade Association, says: “Because of inaccuracies and financial impacts, it’s possible the entire clean-vehicle scheme could be subject to challenge.” 

Kit Wilkerson says the Imported Motor Vehicle Industry Association has offered its extensive database on used imports so the Rightcar system works more accurately. But the government has so far declined to take this up.

Problems with Rightcar’s rating system have hit traders hard. Marc Campbell, of Hamilton-based Milan Inspire Cars, describes the feebate scheme’s roll-out as the “worst slap in the face” for the industry over the past two decades.

When Rod Hicks, of Wanaka Auto Sales, sold a 2020 Toyota C-HR hybrid, he expected a $1,400 rebate. But Rightcar came up with a $1,898 penalty. That’s just the tip of the iceberg.

Even big car companies, such as Enterprise and Turners Cars, have also experienced problems. Autofile talks to Chris Stephenson and Greg Hedgepeth.

Industry statistics for April tell the story – in the wake of the feebate scheme launching, sales of new commercials nosedived by 25.7 per cent in April compared to same month of 2021. On the flipside, new-car registrations came in at similar levels with plug-in and hybrid sales being boosted.

As for used-imported cars, they slumped by 35.7 per cent and used commercials tumbled by 71.6 per cent.

David Crawford, of the Motor Industry Association, reports it’s the first time in more than a decade a ute hasn’t made it into the top three for monthly overall registrations. One bright spot here: the new-vehicle sector hasn’t been impacted by the feebate system like used imports have.

Tony Everett, the MTA’s sector manager – dealers, says many of Rightcar’s results have failed to pass the test for being reasonable. He asks how this can this happen so early into the launch of the clean car discount.

The Financial Services Federation warns unless the government makes major changes to the amended Credit Contracts and Consumer Finance Act (CCCFA), its objectives to convert the fleet to electric “will be impossible to achieve”.

In addition to in-depth coverage of the feebate scheme fiasco, stories in the May issue of Autofile include:

• Frank Willett, chief executive of Autohub, talks about the higher costs being seen across the supply chain. “Never before have I seen such major changes to our industry – and they are rolling out.”

• The FSF has criticised changes to the CCCFA that have been proposed by Minister David Clark as “very disappointing”, while there’s an update on what the future holds.

• Traders have been reminded to be extra vigilant about suspect visitors after Auckland dealerships were hit by criminals in April. Police have made one arrest.

• Millions of dollars remain outstanding to unsecured creditors following the liquidation of Autoterminal NZ Ltd.

• Plus: Shane van Gisbergen aims to compete in the New Zealand round of the World Rally Championship this year, disputes, industry movers and unrivalled statistics on the car industry.

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