The dollar has just dived to a 6 year low.I wonder how many of the backyard type dealers suddenly find its time to find easier work elsewhere. Petrol has to skyrocket again so that means another mass drop of "gas guzzlers" Time will tell I guess.
tamarillo,
Aug 25, 10:18pm
Cool, must have a good BMW e39 soon! When folk are scared of gas guzzlers they get cheaper.
kazbanz,
Aug 25, 10:27pm
oxymoron e39 and good. (drops baited line in water and waits for a bite)
tgray,
Aug 25, 10:32pm
With oil prices plunging, I don't think petrol prices will be skyrocketing any time soon Kaz. We have to remember, we pay for fuel in USA dollars and our dollar has dropped over 20c in the last 12 months and yet the price of petrol has dropped to under $2 p/litre. Why? Demand for oil has plummeted and production of oil has not dropped accordingly. It was well over $100 a barrel last year and has dropped over 60% in price since to under $40 p/barrel. If it wasn't for this fall in oil prices, we would be paying over $2.50 p/litre by now, due to exchange rate drop.
tigra,
Aug 25, 11:34pm
Not "has just" - been that way for about 3 months
kazbanz,
Aug 25, 11:52pm
mate--you haven't seen the overnight dive. dropped from 81-82 yen down to 74 before bouncing back to sit at 77 ish dropped to 62.44 us so its another drop and fairly sudden.
sr2,
Aug 25, 11:55pm
LOL' you've obviously never driven the E39 M5!
(Hook, line and sinker).
kazbanz,
Aug 26, 12:52am
you wouldn't be silly enough to pay 19 k for an 07 swift done 100k would you?
westwyn,
Aug 27, 4:14am
It's actually often the reverse, unfortunately- the unlicensed backyarders tend to pay "up front" for their stock (or at least with minimum arrears) so a change downwards in exchange rate has lesser effect. In contrast, many larger importers that run in arrears for their stock, have been bitten pretty hard. Even on a moderate size- I talked to a guy today with a medium sized yard who had torn up $18,000.00 overnight- not helped by bad timing on his currency order falling due.
I'm thankful I've nothing on the water unpaid for this week!
kazbanz,
Aug 27, 6:40pm
18k difference means unpaid for stock value of just under 300k
3tomany,
Aug 27, 6:48pm
anyone with stock already paid for or forward covered is going to make a killing but if you were going to transfer money today it would be a bit of a ''bugger'' day
tony9,
Aug 27, 7:00pm
Yes, and if the 18K is a significant part of the retail profit for $300K worth of bought stock then the dealer is sailing way to close to the wind.
rob_man,
Aug 27, 7:26pm
Gay car, gay colour. Best thing would be to pull the motor and put it in a proper car. *Sits poised with rod in hand.
kazbanz,
Aug 27, 7:35pm
Thanks to the backyarders and scumbags a lot of dauckland dealers have little choice.
tgray,
Aug 27, 7:49pm
There are plenty of illegal backyard dealers who are happy to make $200 - 500 tax free profit by picking up dealer trade ins and flogging them off as private sellers. The situation is far worse than people realise. Far worse.
rob_man,
Aug 27, 7:52pm
I don't see the problem with that, how does it affect you or me? Those cars need to go somewhere and often still have another lifetime left in them.
kazbanz,
Aug 27, 7:59pm
GAWSH --Ya mean that the gubbiments law change has had the exact opposite affect to that intended? You mean that the public have even less protection than the had before the law change.? WOOOW--who woulda predicted that happening? Ohh wait-half the legitimate dealers in the country
woki,
Aug 27, 8:53pm
Time to become a merchant banker . That is where the big $$ are earned . John Key will have doubled his wealth again overnight with his insider trading knowledge !
tgray,
Aug 27, 8:54pm
People blatantly breaking the law and you don't see a problem? If that's how you feel, so be it. How does it affect me? Well, illegal dealers who are happy to advertise their shonky cars on Trademe and make a $200 tax free mark up, does affect me, as a registered, tax paying business. It's amazing what these people can do with some plastic ties, a couple of $10 paint cans from Supercheap auto and a 10 mill spanner.
rob_man,
Aug 27, 9:22pm
Maybe we don't all feel we need a nursemaid when we buy a car, if you want to buy with your eyes wide open and take your own risks I think you should be able to find that market. The only reason the gubmint has proscribed this section of the market is to get older cars off the road, why they feel the need to do that is a mystery to me. Some of us like older cars.
edit: and breaking the law, if it doesn't have a victim, so what? It's not like having another layer of commerce below yours is harmful to you in any way. More like a bit of FOMO if you ask me.
bwg11,
Aug 27, 9:50pm
Yes, and the practice of cashing up unsuitable trade-in to these bottom feeders has become more common since the advent of the CGA.
What is the reputable dealer meant to do with old shiters which they would not risk retailing?
westwyn,
Aug 27, 11:04pm
I don't think they're sailing close to the wind! But $18,000 in this business is like $18,000 to anybody else- it's a lot of money off your bottom line overnight, when you're dealing with margin compression within the industry to the extent we currently have. And just quietly, $300,000.00 is not all that significant in the bigger picture- that's one monthly shipment (or less) for this dealership, that sells around 40-45 a month I understand. For the guys doing higher-end stock, the rate has the potential to REALLY hurt.
westwyn,
Aug 27, 11:06pm
Err. Yes. Did I miss something?
kazbanz,
Aug 27, 11:16pm
300k is a a fairly big exposure to not have covered by a locked rate. or to rephrase its a fair ol gamble and neck exposure knowing the consequence. I could understand say 50k left unlocked but not 300 Each to their own I soppose. I prefer not to gamble like that. -Buy it pay/lock it. so the cost price doesn't float away on me.
westwyn,
Aug 27, 11:19pm
I've made comment on this law change so many times I should just save it off-line and cut-n'-paste. but with re-visiting.
The intention wasn't to force older cars off the road- and arguably that hasn't happened anyway, since every known indicator shows the age at which cars "tip off" the fleet is correlated to economic conditions AND the supply of affordable replacements (i.e. cheaper used imports).
The real issue at the time, was the concerns by Com-Com, MED, MCA, AA, TradeMe, etc, that dealers were circumventing their perceived legal obligations to consumers by selling "as is where is" under the guise of auction, tender etc. Whether or not the car was cheaper as a result, was considered irrelevant- in fact, some argued that consumers were being "duped" into accepting no consumer protection under the "guise" of lower prices- fancy that!
For the 99% of buyers who purchased this way, it was never a problem- nor should have been. For the 1% who bought a dog- whether on a knowing or unknowing part of the vendor- their subsequent "loss" became the poster child of the "It isn't FAIR!" brigade who railroaded the change under the all-encompassing "consumer rights" mantra.
Older cars just happened to also be caught up this, since no-one as prepared to accept an arbitrary age or km limit (as I proposed in my submission, oral presentation and subsequent discussions in person with the two Cabinet ministers dealing with the legislation.
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