Sales at Paul Kelly Motor Company’s four used car branches in Christchurch were strong in July but they were particularly so at the Manchester Street yard which deals mainly in double cab utes.
“June was OK,” says general manager Ben Harris. “But July has been strong across the four yards.”
Sales have been buoyant, especially for four-wheel drive utes and SUVs.
Harris agrees the Government’s announcement that new utes sold after January 1, 2022, will attract a tax to help pay for the EV rebate has had a knock-on effect.
People may be getting in early and buying used utes in case the levy increases prices for second-hand vehicles.
Looking forward, Harris says that with the fee being added to ute prices, he feels fortunate that Paul Kelly Motors is dealing in second-hand rather than new utes.
Supply of used vehicles is better than it was, and Kelly Motors’ stock levels are “about the same as it was before COVID”.
“Jason Wood who buys our used imports – which are 90% of our fleet – and Brett Anderson our NZ vehicle purchaser aren’t having as many sleepless nights as they were six months ago.”
However, to secure good stock the company is having to pay a little more.
The Japanese market is still in lockdown in some areas, says Harris. “It’s supply and demand and there’s not the level of stock there that there was pre-COVID.
“But Jason has been doing this job for 20 years and he’s got really strong relationships that are proving to be invaluable.
“Brett with NZ-new is working really hard and is having to think outside the square when he’s buying, say, Ranger utes.”
On the electrified vehicle front, “we’re getting more enquiry for hybrids and EVs. There’s more awareness and we’re getting enquiry about vehicles and their eligibility for the rebate.”
Though the Government’s announcement on rebates is stimulating enquiry “at this stage as much as anything it’s about education”.
Harris says Paul Kelly Motors is a big importer of smaller-engined Japanese cars: “a lot of them are exempt from
the levy; they have low CO2 emissions”.
“With the bigger-engined European vehicles we’ve been selective about what we purchase going forward.”
Harris says the company has been able to maintain good margins.
“Our stock across our four yards is from $5990 to over $230,000, and
a percentage of those vehicles will attract a levy next year, but we don’t focus on one particular area.
“Overall, sales are strong but there’s still a little bit of volatility and uncertainty in the market, though it’s safer than it could have looked (in a time of COVID).
“We have three days of trading left (in July), and we’re on-track to deliver a result that I’m pretty sure Paul (Kelly) is going to be happy with,” Harris said when AutoTalk spoke to him towards the end of July.
“If what we’re seeing in July translates into August and beyond…”
Harris says Paul Kelly Motor Company benefits by being a trustworthy brand.
“A lot of customers have had a good experience with (us)…and the strength of our brand is coming through at the moment.”
