Are on road costs a rort in NZ?

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#1292653 27-Apr-2015 23:01

Since you can't really avoid having the things the ORC represent, why don't they simply allow for them in the car price? What's the point of separating them?

Geese

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#1292667 27-Apr-2015 23:29

I've bought 5 new motorcycles in last 4 years, and have found some dealers charge $350 ORC, some round up to $500. When asked why it costs more than actual cost of REG/WOF/petrol, I am told it includes assembly (as they come in crates without wheels on, handlebars, on, etc) and road testing.

mattwnz

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#1292673 27-Apr-2015 23:52

Geese: I've bought 5 new motorcycles in last 4 years, and have found some dealers charge $350 ORC, some round up to $500. When asked why it costs more than actual cost of REG/WOF/petrol, I am told it includes assembly (as they come in crates without wheels on, handlebars, on, etc) and road testing.

Can't see car dealers assembling cars somehow :) But surely the assembly etc should come out of their margin on the product price rather than coming under onroad costs. Otherwise they should add on an assembly price, so the consumer can compare apple with apples. I think the only acceptable on-road costs should be the government charges, eg. the reg, and the wof. The rest of the costs they are putting under the cost seem to be the cost of sale on the product IMO.

Apparently it is a lot worse over in Australia, as apparently onroad costs can be a couple of thousand.

gregmcc

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#1292690 28-Apr-2015 06:29

If the dealer gave you a price and then said hey there are these extra costs it's not on, they are a retailer like any other retailer, do you go and buy a TV and expect a grooming cost to be added?

Expect the product to fully legal and usable without any additional charges when you purchase it, doesn't matter what the product is. If the car dealer hasn't got the sense to have the price including these costs then it is their loss, this is the whole point in been a retailer, a margin to cover these things.

floydbloke

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#1292694 28-Apr-2015 07:09

Geektastic: Since you can't really avoid having the things the ORC represent, why don't they simply allow for them in the car price? What's the point of separating them?

To make the sticker price more attractive.

Auto-correct is why I have crust issues.

MikeB4

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#1292700 28-Apr-2015 07:42

gregmcc: If the dealer gave you a price and then said hey there are these extra costs it's not on, they are a retailer like any other retailer, do you go and buy a TV and expect a grooming cost to be added?

Expect the product to fully legal and usable without any additional charges when you purchase it, doesn't matter what the product is. If the car dealer hasn't got the sense to have the price including these costs then it is their loss, this is the whole point in been a retailer, a margin to cover these things.

Their prices include the phrase like 'plus on road costs' so it is not hidden. You can do the registration etc yourself, it will cost you anyway or have them do it.
It is a very competitive market, discuss with your dealer as I said earlier I never pay it.

tripp

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#1292704 28-Apr-2015 07:58

The last 2 new cars (less than 1400cc under 20k cars) only paid 1 on road cost.

First in 2009, got them to drop it plus first 4 services for free.
Last year got a new car, paid the ORC however this is because there was already a 3k discount on the car :)
Hint, buy cars at the end of the month as they try and meet targets, sort out finance (if needed) before even talking to them, on site finance has so many evils in the T&C's it's not funny.

Ask for extra's like free services, discounts etc. Worst they can say is no. If they do then just ask for their business card and make it sound like you are going to "look around at other dealerships". They will then run off to their managers and normally come back with an "yes we will do it" or a "we can't do it but we can do this".

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Dingbatt

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#1292706 28-Apr-2015 08:09

The whole "plus ORC" rort, or advertising technique, is the same in my mind as the computer sales outfits that have their pricing "plus GST". Even if there is an inclusive price written in smaller font somewhere I believe it is misleading for a retailer to do this.
When I challenged a store manager about this his response was that they sell to other businesses, also if they put the inclusive price then they would look more expensive than their competitors. My response to the former is that if people can't subtract the GST from the retail price then maybe they should not be in business. And the latter may need government regulation to ensure a level playing field. On 1 October next year it will be 30 years since GST was introduced in NZ, isn't it about time this advertising 'technique' was stamped out?
Having completed the above rant, at least it's not as bad as the USA, where the ticket price doesn't include state or federal tax, or things like a recycling levy (California) that can make what looks like a good deal not so good after all.

To bring it back to topic (sorry for the detour) it is not only new cars but used imports as well where the cost of import compliance is also added afterwards as part of the onroad costs. As far as I am aware those costs are known when the vehicle is sitting on the lot, so should be included in the ticket price.

Edit: Grammar repair.

“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996

reven

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#1292714 28-Apr-2015 08:45

$500 for 30 minutes work to remove some plastic, I'm in the wrong business.....

MikeB4

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#1292717 28-Apr-2015 08:50

reven: $500 for 30 minutes work to remove some plastic, I'm in the wrong business.....

You are forgetting Initial licence/registration. Predelivery checks, WOF etc etc

nakedmolerat

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#1292718 28-Apr-2015 08:52

mattwnz: Can't see car dealers assembling cars somehow :)

My last Hyundai ix35 was direct from Korea (I want specific color which is not common for NZ). When it arrived, the dealer showed it to me and they basically need to put the door seal, seats, dashboard etc. Took them a good couple of days to get that sorted.

I have bought 3 new cars - never paid ORC, and further discount on RRP.

MikeB4

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#1292719 28-Apr-2015 08:55

To refer to these charges as a "rort" is incorrect, they are in the vast majority neither fraudulent nor dishonest. These are up front declared real costs of putting a new car or and ex overseas used car on the road. They are avoidable either by doing the work yourself (except WOF) or
negotiating these prices. If a dealer wont budge then walk, it's a very competitive market.

Geektastic

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#1292731 28-Apr-2015 09:13

floydbloke:
Geektastic: Since you can't really avoid having the things the ORC represent, why don't they simply allow for them in the car price? What's the point of separating them?

To make the sticker price more attractive.

Seriously? $1000 or less might change the attractiveness?! How tight would you have to be for that to be so?!

Geektastic

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#1292733 28-Apr-2015 09:15

Geese: I've bought 5 new motorcycles in last 4 years, and have found some dealers charge $350 ORC, some round up to $500. When asked why it costs more than actual cost of REG/WOF/petrol, I am told it includes assembly (as they come in crates without wheels on, handlebars, on, etc) and road testing.

Do you still have them, or do you just get through motorcycles faster than I get through jeans?!

tigercorp

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#1292734 28-Apr-2015 09:17

Geektastic:
floydbloke:
Geektastic: Since you can't really avoid having the things the ORC represent, why don't they simply allow for them in the car price? What's the point of separating them?

To make the sticker price more attractive.

Seriously? $1000 or less might change the attractiveness?! How tight would you have to be for that to be so?!

How stupid would you have to be to choose to pay $1000 more when you have choice?

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