People might just have to be patient, or pay more, if they’re after a particular type of vehicle that isn’t readily available.
The extent of any problems will of course depend on how many cars end up needing to be replaced.
As of Tuesday morning, the country’s largest general insurer, IAG, had received more than 1500 vehicle claims. IAG trades under the brands AMI, State, NZI, NAC, Lumley and Lantern, and underwrites insurance provided by ASB, BNZ, Westpac and The Co-operative Bank.
Meanwhile, AA Insurance had received 1000 motor claims and Vero just over 100, but expected this number to rise significantly as people lodge claims with brokers.
Motor Industry Association chief executive David Crawford said the availability of cars would also depend on the extent of damage to infrastructure, which could affect the transportation of cars from the Ports of Auckland to testing centres and dealerships.
Commenting on the new car market, Crawford said demand had been high in recent years, as Covid travel restrictions saw people spend their money domestically.
At the same time, the production of cars was constrained, so there had to be some “rationing” of popular models.
However, a Giltrap Motors spokesperson said the supply for new vehicles was returning to normal.
As for imported used cars, Vinsen said government fees imposed on high-emitting vehicles made it uneconomic to import some models, including those that retail for less than $8000.
Turners chief executive Greg Hedgepeth said vans, the Nissan X-Trail SUV and Subaru Legacy were among the models that had become more expensive due to the Clean Car Standard, which also subsidises the cost of electric vehicles.
Hedgepeth said the number of Japanese imports had fallen by about a quarter in the past six months.
Vinsen said constrained supply had however been tempered by the fact demand for secondhand cars had fallen, as economic headwinds are seeing people cut discretionary spending.
Given it is much faster to import used, rather than new cars, he was confident those seeking used cars would be able to find replacements.
Vinsen also said replacing a few thousand cars would be manageable, given around 250,000 to 300,000 new and used cars are imported each year.
“One way or another, the industry will supply them,” he said.
Hedgepeth noted people were also continuing to sell used cars within New Zealand.
Indeed, Turners currently has 2600 cars for sale – a standard number for the company.
Hedgepeth was confident Turners would easily be able to identify flood-damaged cars, should people try to flog theirs off via Turners.
He warned people who buy cars via Trade Me and Facebook to be wary of flood damage.
Hedgepeth was grateful Turners hadn’t lost any stock in the floods.
The spokesperson for Giltrap Motors said 30 used cars had been damaged at its Archibald & Shorter dealership on the North Shore. None had been written off yet and the impact of flooding across its other dealerships was still being assessed.
Crawford, of the Motor Industry Association, said flood-damaged vehicles tend to be written off because a lot of the electronics run below the doors.
“It’s a ticking time bomb for that to corrode. Replacing the wiring looms in cars is quite expensive. So, we expect to see quite a few cars written off,” he said.
Indeed, Vero motor claims manager David Drillien said vehicles that have been submerged underwater will likely be deemed total losses.
“Factors that will influence this include whether the water that entered the car was contaminated,” he said.
Drillien said customers could speed up the claims process by providing their insurer with clear photos of damage.
“We will be looking to see images of any visible water lines on the vehicle (to show how high the water levels reached), as well as images of the four corners of the car, the odometer reading (if possible), and the registration and warrant information.”
Drillien also advised people not to drive damaged cars, as safety features like electric seatbelt tensioners could be broken.
