Millions of dollars pumped into Rotorua's car dealerships

Ebbett Rotorua branch manager Ricky Brackfield. Photo / Andrew Warner

Millions of dollars are being pumped into Rotorua's car dealerships as people spend extra cash upgrading their vehicles instead of on overseas holidays.

However, shipping delays mean people wanting new cars not currently in stock for Christmas may have to wait until almost mid-next year.

Figures from Rotorua Lakes Council show a building consent valued at $2.5 million was issued for a new showroom and service centre at 105 Old Taupo Rd and a consent valued at $650,000 for a Toyota showroom at 146 Lake Rd.

The two consents make up the lion's share of the $3,480,000 worth of commercial consents issued by Rotorua Lakes Council in September.

The news comes as the Ebbett Group announced it was building a multimillion-dollar car dealership at 270-276 Te Ngae Rd, which would create more than 75 jobs for the city.

An artist's impression of the Ebbett Rotorua site on the corner of Te Ngae and Vaughan Rds Photo / Supplied

The purpose-built 7650 sq m development will be home to Ebbett's current Rotorua Kia dealership on Lake Rd.

Ebbett Rotorua branch manager Ricky Brackfield said it was a busy time for car dealerships as people spent money on new cars instead of overseas holidays.

Artist's impression of Ebbett's new reception area - something dealerships say customers are expecting now. Photo / Supplied

Brackfield said people's houses were also worth more and therefore they had the ability to borrow more to invest in updating their cars.

It was scenarios like that which were driving investment in Rotorua's car dealerships, he said.

"It's a great time for that."

Brackfield said the industry was changing with the introduction of new technology and customers were demanding a better experience, "and rightly so".

"They're expecting to walk into a dealership and have somewhere nice to sit and have coffee."

The new multimillion-dollar car dealership being built on Te Ngae Rd was "exciting" for Rotorua, he said.

"Rotorua is a great spot for up-and-coming [businesses], hence the investment that is happening. It's good for Rotorua."

But Brackfield said shipping delays were having an industry-wide effect.

"Car sales have gone up across the country and we are struggling to get stock here," he said.

It meant people wanting new cars not currently in stock would likely be waiting until March or April next year, he said.

"You're looking at four to six months if you want a new car but it does give people time to get their finance sorted."

A new car showroom and service centre was planned for the site at 105 Old Taupo Rd. Photo / Andrew Warner

Rotorua Toyota branch manager Alastair Douglas said he and his team were "extremely excited and proud" to be able to move to their new purpose-built showroom on Lake Rd.

"It's been a long time in planning, and the entire project and building represent a considerable investment by the owners of Rotorua Toyota back into the Rotorua economy."

Douglas said construction was well underway for the new facility, which they would move into next year.

"We employ well over 30 local people to keep Rotorua Toyota running. I'm incredibly proud of them - it's a great feeling for us all to be able to provide employment for our team members and support their families during these challenging times."

Post-lockdowns, Douglas said the company's new and used Toyota sales had "taken off", with new models being introduced in the last 18 months.

"It's great to see the huge appetite Rotorua has for the Toyota brand and our market-leading line-up of Hybrid vehicles."

However, he said the biggest challenge was keeping up with demand in the face of global production and logistical challenges that were constantly changing.

"We see competition as a good thing for our business and for our local community. It's pleasing to see all the new investment into Rotorua by car dealerships.

"It's a great show of confidence for our town."

Rotorua developer Tony Bradley, from TPB Properties, who owns the site on Old Taupo Rd, confirmed a new dealership was being built there.

However, he said the name of the dealership which would tenant the site would be released later in the year.

"It will definitely tidy up that corner. It has been pretty derelict for a few years."

Rotorua Business Chamber chief executive Bryce Heard said it was genuinely encouraging to see big investment in some sectors.

However, the region was seeing the "full-spectrum" of winners and losers post Covid-19 lockdown and it was important to stay empathetic towards the more struggling sectors.

"But it's good to know it is not all bad news."