INL 15 Jan 2019 Digital Edition

12
JANUARY 15, 2019
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New cars sales head for another record year
But used imports are on the way down
The English Fortnightly (Since November 1999)
ISSUE 407 | JANUARY15, 2019
Let us begin the New
Year on a positive note
The dawn of a New Year
always brings with it
fresh beginnings, punctuated
by new hope,
ideas, wishes and renewed
optimism. Although various
faiths have varied ‘New Year
Days’ over a 365-day period,
the world has come to accept
that January 1 is the start of a
new calendar, new phase in
life – everything in fact that
marks a new start.
Day of Celebration
January 1 is also a public
holiday in many parts of
the world making it a Day
of Celebration and as we in
Indian Newslink wish you,
your family, colleagues and
everyone around you the best
of everything in the New Year,
we hope for world peace and
greater economic and social
prosperity.
True, there are many things
that ail this world; poverty is
the worst demon that blocks a
significant number of people
everywhere from becoming
partners in human progress.
Millions subsist below the
poverty line, creating amajor
challenge to governments
across the hemispheres. But
we hope that there would be
collective global progress for, in
the 21st Century, what affects
one country has a rippling
effect everywhere else.
Wellbeing Approach in New
Zealand
There are signs that the New
Zealand economy will continue
to perform well, despite the
rhetoric of ‘loss of business
confidence’ orchestrated
mainly by the political adversaries
of the current coalition
government. Prime Minister
Jacinda Ardern has done well,
winning international attention
with her ‘genuine politics.’ She
has brought along a new brand
of governance that is open and
honest – a brand that seems to
be working.
Year 2019 will see the furtherance
of the Government’s
‘Wellbeing Approach,’ with
Budget priorities spelling new
ways of working and of thinking
about how we measure our
success as a country and as a
Government.
Raising Living Standards
The priorities for Budget
2019 have been chosen using
the Treasury’s Living Standards
Framework (LSF), evidence
from sector-based experts
and the Government’s Science
Advisors, and collaboration
among public sector agencies
and Ministers. They are
focused on the outcomes New
Zealanders want to achieve
and all Ministers and agencies
will be collectively responsible
for delivering the priorities.
To begin to tackle the
challenges identified in
the Wellbeing Outlook, the
Government has identified
five Budget Priorities for
Budget 2019, which include
(1) Creating opportunities for
productive businesses, regions,
iwi and others to transition to a
sustainable and low-emissions
economy (2) Supporting a
thriving nation in the digital
age through innovation, social
and economic opportunities
(3) Lifting Māori and Pacific
incomes, skills and opportunities
(4) Reducing child poverty
and improving child wellbeing,
including addressing family
violence and (5) Supporting the
mental wellbeing for all New
Zealanders, with a special focus
on under 24-year-olds.
US-China Trade War
The global scene provides
a mixed bag of goodwill and
conflicts of interest.
The commerce sector is holding
its breath as the US-China
Trade war, the worst in
decades, continues unabated.
The Trump Administration
has imposed tariffs on Chinese
products valued at US$ 250
billion. Beijing has retaliated.
The US has also slapped
tariffs on steel imports from
Europe, Canada, Mexico and
many other countries.
As the Economist
mentioned, Donald Trump
intervened on national-security
grounds to scupper a US$ 117
billion bid from Broadcom, a
chipmaker with ties to South-
East Asia, for Qualcomm.
“It would have been the
biggest-ever tech merger.”
“In another dysfunctional
year at the White House,
Rex Tillerson was sacked as
Secretary of State, as was Jeff
Sessions as Attorney-General,
both after the President had
publicly undermined them.
The investigation by Robert
Mueller, the Special Counsel,
into Russian influence in
American elections rumbled
on, laying charges against some
of Mr Trump’s former aides.”
In Britain, Prime Minister
Theresa May is battling with
Brexit issues.
Despite these problems, we
hope that 2019 will usher in a
new era of prosperity.
Indian Newslink is published by Indian Newslink Limited from its offices located at Level
1, Number 166, Harris Road, East Tamaki, Auckland 2013 and printed at Horton Media
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Newslink and its management and staff do not accept any responsibility for the claims
made in advertisements.
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Editor &General Manager: Venkat Raman; Production Manager: Mahes Perera;
Financial Controller: Uma Venkatram CA;
Phone: (09) 5336377 Email: info@indiannewslink.co.nz
Websites: www.indiannewslink.co.nz; www.inliba.com; www.inlisa.com
Mark Jennings
New car sales are heading for
another record year while
used imports are declining.
Buying a car can be a
tricky thing. Unlike houses, they
rarely go up in value.
As soon as you drive them off the
showroom floor or out of adealer
yard, they start costing you money.
Real money.
Personal experience
Not too long ago I was in the
market for a car and faced the
common dilemma – do I buy a new
car and have peace of mind knowing
that no one has thrashed it or do I
go for a second hand car that costs
less because the previous owner has
already copped a big chunk of the
depreciation?
Part of me wanted to show support
for one of Newsroom’s foundation
partners and buy a new Holden, but
the car (unlike many New Zealanders
I didn’t want a SUV or a Ute) most
suited to my requirements, an Astra,
didn’t quite seem right.
The Astra is a fine car and, as
Holden kept hammering away in its
marketing, it won European car of
the year in 2016.
But cars need to please on a variety
of levels, (many of them subjective)
and the Astra’s styling and driving
position didn’t quite do it for me.
I ended up buying a three-year-old
Volkswagen Golf Highline with
relatively low mileage. So far, things
have gone well. It drives nicely and
has all the technology I need.
Case for a new car
However, a full service recently set
me back nearly $500 and it made me
think again about the case for buying
a new car.
A new Holden comes with threeyear-free
servicing and so do other
brands like Mazda, Kia etc.
Andrew Collett, the boss of the big
Holden dealership, Davies Motors
in Manukau, says free servicing is a
major incentive for new car buyers.
“It is a really big deal. If you are
doing moderate mileage like most
people you are fully covered and it
can save you a heck of a lot of money,
up to $3,000 in some cases.”
Collet also points out that most new
cars these days come with at least
a three-year guarantee and usually
roadside assistance for a similar
period.
But don’t you pay a hefty price for
that peace of mind?
Prices remain steady
Well, not as you once did, according
to Collett.
“The price of new cars haven’t
moved much in recent years and
they are comparatively a lot more
affordable than they used to be years
ago.
“I remember in the 90’s a fourwheel
drive Ute cost about $40,000.
These days, you can get a new UTE
for about $45,000 and of course you
get a lot more for your money.”
Statistics show that sales of new
cars have been steadily rising since
2009 and registrations hit a record
monthly high in October 2018 with
16,670 new vehicles. Total new car
sales are likely to end the year close
to 110,000.
Part of the rise has been due to
New Zealand’s on-going tourism
boom, which is driving demand for
rental cars.
Used cars purchase falls
On the other hand, sales of used
imports have declined month-tomonth
for most of the year.
According to Collett, “safety” has
become amajor factor in the minds
of buyers weighing up whether to
buy a new or second-hand car.
“It is really big in people’s minds
and we get asked a lot about them
(safety features) in the showroom.
It is not just about ABS brakes like it
once was, now buyers are interested
in features like lane keep assist (it
steers the car back into the lane if it
detects that you are drifting).
“The safety technology goes in
leaps and bounds year by year and
the thing now is that much of it is in
entry level cars not just the premium
models. You can now buy new cars
in the mid $20,000 range to the mid
$30,000s that are very well-equipped
and you didn’t used to be able to do
that.”
The better fuel efficiency of new
cars now that petrol prices are rising
again is also influencing buyers.
“It is the second most important
thing after safety,” says Collett.
But what about the depreciation?
Selling is losing
Collett gives a speedy but self-evident
response: “You only lose when
you sell.”
He quickly adds that the new car
market is very competitive and dealers
will always “meet the market.”
In other words, buyers can
limit the amount they lose by driving
down the price when they buy.
“I don’t believe in this no haggle
buying policy of companies like Toyota.
We are always happy to engage
with the customer. Negotiating a
better price has been part of the car
business forever and ever. That is
why they call us dealers.”
If you don’t want to haggle or don’t
back your skillset then Collett says
you should decide exactly what car
you want and then wait until there is
an ‘offering’ in the market.
“Holden, for example, will nearly
always have an offering in the market
and so do other brands.”
Complex finance deals
He agrees that finance deals make
things more complicated.
“There are a lot of low interest
rate offerings in the market and
rates through a new car dealer are
now very competitive compared to
other lenders, but buyers have to
realise there is no such thing as a free
lunch.”
Asked to put the case for buying a
second-hand car Collett is hesitant,
saying the gap between the price of
new and used cars “is not really that
great these days”.
He also finds it hard to recommend
cars that are more than three years
old, especially Japanese imports.
When pushed, he conceded that
ex-rentals can be good buys.
“When the rental fleets are being
turned over and there are quite large
numbers of them on the market the
buyer can get good value but you
have to keep a look out from week to
week.”
Mark Jennings is the Co-Founder
and Co-Editor of Newsroom, New
Zealand’s high-quality, independent
media organisation. Indian Newslink
has published the above Report and
Picture under a Special Agreement
with Newsroom. Holden is a foundation
supporter of Newsroom.
Visa Variation for stranded Chinese workers
RNZ, Wellington
The government will try to help
a group of up to 30 Chinese
construction workers who have
been left without work and a
place to live.
In December, RNZ reported the
group’s concerns about Peter Li, who
they said they paid tens of thousands of
dollars for work visas.
The Issues
The men were given contracts with
a labour hire company, National
Personnel Limited (NPL).
They were promised steady work,
but the men said that had not
happened and on Monday the group
was trespassed from their temporary
accommodation.
Police were called when they tried to
retrieve their belongings the next day.
Restrictive Visas
The workers are restricted from working
for any company other than NPL
because of the type of visa they hold.
Immigration Minister Iain Lees-Galloway
said that Immigration New
Zealand (INZ) was working with the
men and the Unite union to see what
help it could offer.
“The sorts of things that they will be
looking into is, can there be a variation
to their visas that allows them to pick
up work (with other employers). I
believe that a number of employers
have come forward and offered the
opportunity to work, and that’s what
these workers are looking for. They
just want to be able to work, earn some
money, and take care of themselves
whilst they are in New Zealand,” he
said.
Mr Lees-Galloway said the workers’
welfare was a priority.
Police said that no one had been
arrested over the trespass, but they
were still investigating whether any
offences were committed.
Community help
Meanwhile, Chen Genxiang, a worker,
said that a Chinese community group
had provided accommodation for
about 18 of the men.
“Two women from the community
group came yesterday,” she said
through a translator.
“They’re also Chinese. They gave us
some food. We felt reassured. They
told us that they will help us to make
contact with the Chinese consulate
here and get back the money we paid
in China.”
INZ said that the options available to
the workers would depend on their
personal circumstances.
An Immigration New Zealand investigation
into Mr Li is ongoing.
Indian Newslink has published the
above Report and Picture under a
Special Agreement with www.rnz.
co.nz