This update provides important information that all motor vehicle traders and their sales and customer support teams should be aware of.

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Motor Vehicle Traders - Need-to-know update

March 2022

Welcome to the first update for 2022.

In this issue we bring you; news of a change to the Registrar of Motor Vehicle Traders with, new tools and resources supporting the April 1 Clean Car rebates and fees and CO2 Targets for vehicle importers, links to Waka Kotahi Safety Rating Lifecycle video and expanded section of RightCar on Advanced Driver Assistance Systems (ADAS), two determinations involving imports from Singapore where the odometers had been tampered, and finally an update on the review MVTR Fees and Motor Vehicle Disputes Tribunal Levy.

Change to the Registrar of Motor Vehicle Traders

The Ministry of Business, Innovation & Employment recently implemented some changes for how it supports the Motor Vehicle Traders registration scheme. As part of those changes, we have aligned support for this registration scheme with a team that specialises in occupational regulation and have appointed a new Registrar, Duncan Connor. 

Duncan Connor is the National Manager for Occupational Regulation and leads a team that support several occupational regulatory schemes. In his role, Duncan is supported by a strong team, which has experience and continuity for supporting the Motor Vehicle Traders registration scheme.

Clean Car Rebate and Fee information and calculators published

From 1 April 2022, purchase of low emission vehicles (0 to 146 grams of CO2/kilometre) will be eligible for rebates, and purchasers of high emission vehicles (192 grams and above) will be subject to a fee, if they are the first registered owner in New Zealand.

  • www.rightcar.govt.nz has been updated to provide rebate or fee information on vehicle models.
  • www.nzta.govt.nz/cleancar/ has been updated to provide an overview of the scheme, and including rebate eligibility criteria. This is also the link consumers visit to apply for rebates.

CO2 Targets for vehicle importers is now legislated

The Clean Vehicles Act was enacted in February and legislates CO2 reduction targets that vehicle importers are to achieve, the charges that apply for not reaching those targets, and a number of provisions to make achieving those targets easier.

For more information refer to the Ministry of Transport.

Safety Rating Lifecycle

Man holding phone while looking at car

Vehicles with higher safety ratings can significantly reduce the chance of people being killed or seriously injured in a crash, and people are twice as safe in a 5-star car than a 1-star car.

The safety rating for every vehicle changes over time. A vehicle’s safety rating can be influenced by:

  • how long the vehicle has been in the market and driven on the road.
  • crash data collected for the vehicle.
  • vehicle technology and safety standards generally improving each year.

Watch the video below to see how safety ratings change over time:

https://youtu.be/i1ByBYf4Bdc

Advanced Driver Assistance Systems (ADAS)

ADAS technologies displayed on car

ADAS technologies are the electronic safety systems in vehicles that help with safe driving and the prevention of crashes.

As part of the recent updates to the RightCar website, Waka Kotahi has expanded the section on Advanced Driver Assistance Systems (ADAS)

ADAS features have a variety of different names and work in different ways. They include features such as lane keep assist, collision warning and adaptive cruise control. When used correctly they can reduce the chances of a crash and help toward achieving Road to Zero targets to keep people safer on our roads. 

The number of cars with ADAS features is low in the NZ fleet but this number is increasing and recent Waka Kotahi research shows that close to a third of drivers have had some experience of driving in an ADAS equipped vehicle.

It’s important to share the message that ADAS enhances the ability to drive safely but that ADAS features aren’t a replacement for the legal requirement to pay full attention to driving and controlling a vehicle. 

Please read this comprehensive guide to ADAS technologies, to help you have better conversations with your customers.

 

Two claims where the odometers had been tampered with

The Tribunal has recently determined two claims involving vehicles recently imported from Singapore where the odometers had been tampered with. Both of cases highlight that motor vehicle traders who import vehicles should take reasonable steps to ensure that information about those vehicles, including odometer readings, is accurate, because it is the New Zealand based trader who ultimately has liability under New Zealand consumer protection laws if the vehicle has unacceptable defects or its odometer has been tampered with.

Jacques v Seven Seas Motors Ltd and Nasser

This case involved the sale of a $30,000 2011 Jaguar XJ. The applicant applied to the Tribunal seeking to reject the vehicle and alleged that the vehicle, which was advertised as having an odometer reading of 17,300 km, had defects inconsistent with that mileage. The Tribunal concluded that the evidence, including service records from Singapore, showed that the vehicle’s odometer had been tampered with and the vehicle’s true mileage was much higher than represented. The applicant’s rejection of the vehicle was upheld.

http://www.nzlii.org/nz/cases/NZMVDT/2021/114.html

Kaur v Seven Seas Motors Ltd

This case involved the same motor vehicle trader and concerned a $29,500 2012 Jaguar XJ. The vehicle was advertised has having an odometer reading of 24,000 km, and at the time of sale the odometer displayed a reading of 25,213 km. The applicant in this case also applied to the Tribunal seeking to reject the vehicle because it alleged that the odometer had been tampered with. Again, the evidence presented, including warranty and service records from Singapore, showed that the true odometer reading was much higher – the most recent service record from August 2020 showed an odometer reading of 187,999 km. The application to return the vehicle and obtain compensation was allowed, although the amount payable to the applicant was reduced to reflect that she had damaged the engine by overfilling it with oil.

 

Reviews of Motor Vehicle Traders Register Fees and Motor Vehicle Disputes Tribunal Levy

The Ministry of Business, Innovation and Employment (MBIE) and the Ministry of Justice (MoJ) recently sought feedback on proposed changes to:

  • the fees associated with registration and annual renewals on the Motor Vehicle Traders Register; and
  • the levy on registered motor vehicle traders to fund the Motor Vehicle Disputes Tribunal.

We thank those of you who provided written submissions and commentary.  MBIE and MoJ have provided a report to the relevant Ministers on the submissions and final proposals for consideration. We anticipate being able to communicate the outcome of the fees and levy review by mid-2022.

 

Registrar, Duncan Connor. 

 
Ministry of Business, Innovation and Employment - Hikina Whakatutuki
New Zealand Government
 
 
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Ministry of Business, Innovation and Employment
PO Box 1473
Wellington 6140
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