As New Zealand moves into the first stage of the government's new Clean Car feebate scheme, it seems that there is more confusion than clarity swirling around the regulations.
Until the first of January 2022, the rebate scheme only applies to pure electric and plug-in hybrid vehicles, both new and used, as long as the used cars have never been registered in New Zealand before.
Click here to watch the full Clean Car Feebate Panel video
On top of this confusion, there are questions being asked around who is really benefitting from the rebates on the used car market, when up to $3450 is up for grabs on each used electric vehicle coming into the country.
This topic was addressed by David Vinsen at DRIVEN's recent 'Clean Car Feebate Panel' where members of New Zealand's automotive industry and other industry professionals discussed the scheme.
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As the CEO of New Zealand's Imported Motor Vehicle Industry Association, Vinsen had previously been consulted by the government on the scheme, and mentioned that NZ buyers would probably miss out on any gains due to the tight market.
"Since the minister made the announcement, we've had our members taking their $3500 extra each, bidding against each other to buy the available vehicle stock, forcing the prices up in Japan, Vinsen said.
"So this has been a wealth transfer from the New Zealand government, through New Zealand importers, straight to the Japanese sellers — which is exactly what we said would happen."
With this extra demand on the used market for lower-emission vehicles, the industry is supposedly going to see less demand for higher-emitting vehicles, making them look like a better buy.
"The EVs are going to come in more expensive, which is completely contrary to what was hoped, and when the fee side of it starts in January, we're going to have the pressure coming off the less desirable vehicles, and so we'll be able to buy to them more cheaply."
"We've got this completely perverse incentive which is exactly what we said would happen, and it's already playing out. It's just two weeks since the minister made his announcement, and we're already seeing those adverse effects.
It's worth keeping in mind that this adverse situation can only happen on the used market, as new vehicle pricing is transparent.