Rental Vehicle Association Responds To Changes In Clean Car Rebate Scheme

The Rental Vehicle Association of New Zealand’s (RVA) CEO Ben McFadgen is concerned about the impact of the recently announced changes to the Clean Car Discount, set to take effect on July 1st, 2023. “While the changes are intended to promote the use of newer, low-emitting vehicles, we believe they may actually have the opposite effect, increasing the average age of New Zealand's national fleet of approximately 3,600,000 vehicles,” he says.

“Many New Zealanders who have placed an order for a new vehicle and are awaiting delivery could now be financially disadvantaged, and order cancellations will likely follow. Used vehicle prices will increase, and the national fleet will get older, compromising the country's opportunity to drive newer, low-emitting vehicles that offer savings on fuel costs for everyday New Zealanders.

“The rental vehicle industry also places orders for significant volumes of new vehicles each year, most of which are scheduled for delivery in the last six months of the calendar year. These vehicles are now subjected to unforeseen price increases to the tune of many thousands of dollars per vehicle. There has been no consultation with our industry, or tangible evidence presented about the benefits associated with these imposed changes,” says Mr McFadgen.

According to the RVA, reducing the age of New Zealand's vehicle fleet is one of the most effective ways to reduce emissions. The organization suggests that a focus on reducing the average age of national fleet from 15years to 8 years, using petrol, diesel and hybrid vehicles could almost halve emissions. This outcome can be further enhanced by supplementation with PHEV and BEV vehicles

Ben McFadgen believes that fully decarbonising New Zealand's light vehicle fleet according to the government’s current timeline is beyond the country's current ability to deliver. “We need to buy some time, right now we believe this scheme change will result in poor outcomes for Kiwis, when things are tough enough. Especially given the current challenges in the country around infrastructure development, rapid technological development, resourcing and continuity of international supply chains.” He says.

Instead, the RVA calls for stronger collaboration between the government and the motor vehicle industry including experienced fleet managers to review all options to reduce emissions and improve the safety of the national vehicle fleet. “We believe a high level of collaboration, and a focus on reducing vehicle age with ICE, Hybrid and BEV, will result in a substantial improvement in New Zealand's light vehicle fleet and a large reduction in the emissions profile for a fraction of the cost of full decarbonisation.” says Mr McFadgen.

The RVA urges the government to reconsider the changes to the Clean Car Discount and work collaboratively to achieve meaningful reductions in emissions while also supporting the economy, business and everyday New Zealanders.

ENDS

Ben McFadgen, CEO

Rental Vehicle Association NZ Inc.

Mobile: 022 318 5394

Web: www.rentalvehicle.co.nz

Email: BenM@rentalvehicle.co.nz

3B Jeep Rd, Raumati South, 5032

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