Preparing for the Clean Car Discount scheme
Some ideas to get you started.
From 1 April 2022, the Clean Car Discount scheme will mean rebates and fees are applied to imported new and used vehicles based on their CO2 emissions.
Buyers purchasing high CO2 emission vehicles will pay a higher price in recognition of the increased environmental costs they are imposing. The higher the CO2 rating the greater the fee. Buyers choosing zero or low-emission vehicles will receive a rebate, the lower the emissions the greater the rebate.
Fees must be paid before registration of the vehicle, whereas rebates are available to be claimed directly from Waka Kotahi by the buyer after registration.
What does this mean for dealers?
You will have to determine how to handle the “feebate”. The most obvious mechanism will be to include the fee as part of the overall price.
Also consider that buyers who choose to finance the cost of the vehicle will have to get approval based on the total price including the fee. Whereas the finance company may not consider the rebate amount relevant to the finance approval.
Waka Kotahi has provided a lookup tool so you can get an idea of the possible fees and rebates here.
The Clean Car feebate scheme could have a big impact on the total price a buyer pays for an imported new or used vehicle.
What do our car buyers think?
We surveyed active car buyers* across the nation and they told us that they want clear pricing, and for us to be upfront about fees and rebates on the Trade Me listing:
- 85% of buyers would like to see the amount of the fee or rebate on the listing.
- 70% of buyers would like any applicable fees to be included in the listing price.
- If a rebate is available, 50% said they would like this to be included in the listing price or shown separately.
The survey also indicated more market education about the Clean Car Discount to our car buyers is needed:
- 40% of buyers were not aware that there are changes happening to the Clean Car scheme.
- The respondents were highly divided on whether or not it will affect their buying decision, with some saying that it would make them consider cleaner cars and others saying that it won’t sway their decision.
*Trade Me Motors active car buyer survey, February 2022.