Trending »

Broken-down reporting method inflates sales figures – industry ‘fooling’ itself

on March 26 2015 | in Highlights, Industry news, Latest news | by | with Comments Off

New Zealanders didn’t buy a record number of new cars in 2014 after all – because around 25,000 of the 127,000 new vehicles registered were never actually sold. They were pre-registrations, logged with the NZ Transport Agency by distributors and their dealers as “sold” in order to meet internal sales targets and qualify for generous factory bonuses, say senior motoring industry executives. The practice affected between 15 and 20 per cent of all new registrations last year, they say. In most cases the pre-registered vehicles never actually left dealerships or holding yards. Many are still waiting for buyers. It’s a widespread exercise and has been going on in one form or another for years. But it ridicules industry claims of a 30-year ‘sales’ record in 2014, and it takes on new meaning as sales in 2015 shape up to be as strong as last year. Motoring advertising in newspapers up and down the country reveals more about what is going on in the industry than the reporters’ stories. Almost all recent newspaper ads have been for ‘pre-registered’, ‘pre-owned’, or ‘demonstrator’ vehicles. They can all mean the same thing, although distributors and dealers do legitimately register ‘demonstrators’. Automotive News NZ spoke to a number of senior industry people. Each one didn’t want to be named. Said one: “The registrations are not a true reflection of sales, nowhere near it. The market is fooling itself. “Dealers are being loaded up with cars when there aren’t any customers for them. The cars might sit on the yard for canadian pharmacy price list months before being sold. “I’d hate to think of the cars registered last year that still haven’t been sold. The dealers’ job is to sell cars, not put pre-registration plates on them. “That these pre-rego’s are on the NZTA’s books only inflates the numbers. It’s false economy, a time bomb. I don’t want to be in the industry when it goes off.” The Motoring Industry Association, which represents the country’s new vehicle distributors, gets its monthly registration numbers from the NZTA. Neither body records actual retail sales. Some car companies have long supported a reporting method where their dealers each month log unconditional retail sales rather than registrations. This would provide more accurate sales data, but lead to unpopular restructured dealer bonus programmes. Executives say NZ is flooded viagra vs cialis for bph with cars in storage, many with expired registrations and warranties. Rental cars add to the numbers. They are sold as buy-back deals, where the distributor and dealer agrees to buy them back after their short life as a hire car. This life lasts only three or four months. Distributors then push them into the market through dealers or fleet lease programmes. Only so many can be sold. Those that aren’t end up in storage. It’s largely a problem of over-supply, where the factory overseas forces NZ distributors to take more and more vehicles and distributors in turn force them on dealers. The over-supply means buyers will continue to have the upper hand. One executive said: “Most dealers have given up making money on the car itself because the margins are so low. They make their money on the finance deal and through sales target bonuses.”    

Pin It

Related Posts

Comments are closed.

« »

We are the World

New car gadgets

Industry news

Related posts

Top five cars

Top 10 series

Pull up to my bumper


Popular Posts

Scroll to top
antibiotics to buy online bupropion for sale
In cialis 20 A plavix side effects of stopping May natural viagra Hate Skin. I propecia damn show Hair is propecia generic.
apa format example web reference us history research paper outline template research project scheme science fair research paper example apa format