TRA - Turners Automotive Group [previously TNR - Turners Limited]

[Jay]

Right thread this time

I got an email the other day that AutoSelect is closing their Auckland and CH CH yards and Fleet partners, owners of AutoSelect, will send their ex-lease cars to Turners to sell - should be a boost for them

[nztx]

First quarter divvy should be announced anytime now me thinks.


Me thinks you could be right - I'm sure Tina will organise pressing the right button for us sometime in October .. :)

[clearasmud]

Me thinks you could be right - I'm sure Tina will organise pressing the right button for us sometime in October .. :)

I'm counting on 6c/sh

[Beagle]

Right thread this time

I got an email the other day that AutoSelect is closing their Auckland and CH CH yards and Fleet partners, owners of AutoSelect, will send their ex-lease cars to Turners to sell - should be a boost for them

Very nice. They're quite big operators so that should help supercharge Turners results.

[winner69]

Very nice. They're quite big operators so that should help supercharge Turners results.

Not supercharge ---- TURBOCHARGE is the way to go

[Beagle]

Not supercharge ---- TURBOCHARGE is the way to go

LOL nice one mate...just for you seeing as Turners is a vehicle business https://www.bing.com/videos/search?q=supercharging+v+turbocharging&view=detail&mid=CFA742C6C3762998B952CFA742C6C3762998B952&FORM=VIRE

In this day and age maybe we're both wrong and this "electrifies" Turners performance ;)

[Davexl]

Trade Me: Median price for used cars spikes $3500 in two yearshttps://www.nzherald.co.nz/business/trade-me-median-price-for-used-cars-spikes-3500-in-two-years/TATHQEUEAWCH63DFAVJ7CJFK2Q/

Nice money if you're selling...since when do used cars appreciate in value? Now they do!
Turners clipping the ticket on both transactions, plus there's at least a 6 cent quarterly div arising shortly. Go Turners!

[clearasmud]

Trade Me: Median price for used cars spikes $3500 in two yearshttps://www.nzherald.co.nz/business/trade-me-median-price-for-used-cars-spikes-3500-in-two-years/TATHQEUEAWCH63DFAVJ7CJFK2Q/

Nice money if you're selling...since when do used cars appreciate in value? Now they do!
Turners clipping the ticket on both transactions, plus there's at least a 6 cent quarterly div arising shortly. Go Turners!

Starting to look at my metal with new eyes.
I like the "at least"!

[Beat the Bank]

Turners were also interviewed on Radio NZ this afternoon regarding the increase in second hand car prices. Good exposure as the spokespeople for the second hand car trade.
It is easier to get the required mark up on higher price vehicles than lower prices. Higher prices also equal higher loans which is another key part of the business

[Beagle]

Trade Me: Median price for used cars spikes $3500 in two yearshttps://www.nzherald.co.nz/business/trade-me-median-price-for-used-cars-spikes-3500-in-two-years/TATHQEUEAWCH63DFAVJ7CJFK2Q/

Nice money if you're selling...since when do used cars appreciate in value? Now they do!
Turners clipping the ticket on both transactions, plus there's at least a 6 cent quarterly div arising shortly. Go Turners!

Results out from WHS and HLG this week, (in particular recent trading), show the lockdown effects on business at the moment are very real and they hurt. Last year they paid 20 cents in total, (from memory), so even if they maintained that run rate with the pending quarterly dividend at 5 cents in my opinion that would be an outstanding result in the circumstances.

On the subject of liking one's own car...sometimes the fine art of contentment is a difficult art to master but its much easier when the value is going up :t_up:

[RTM]

Moola owner looking to raise $30m to expand into vehicle finance market
https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12476327

Bit more competition for Turners

[Rawz]

Moola owner looking to raise $30m to expand into vehicle finance market
https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12476327

Bit more competition for Turners

Moola, being a payday lender, is probably looking to target the tier 3 consumers. This space was were Oxford used to play in. Not anymore. Oxford is now targeting (and attracting) higher credit score customers.

[Poet]

Moola, being a payday lender, is probably looking to target the tier 3 consumers. This space was were Oxford used to play in. Not anymore. Oxford is now targeting (and attracting) higher credit score customers.

Yes, and some of those newly financed people will buy cars at Turners, so a win win

[RTM]

Yes, and some of those newly financed people will buy cars at Turners, so a win win


Moola, being a payday lender, is probably looking to target the tier 3 consumers. This space was were Oxford used to play in. Not anymore. Oxford is now targeting (and attracting) higher credit score customers.

Yes....multiple scenarios are certainly imaginable. We'll just have to see how it all plays out.
Disc: Holder

[Beagle]

Moola owner looking to raise $30m to expand into vehicle finance market
https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12476327

Bit more competition for Turners

My view is that its clear from the article that they'll be competition for third and four tier lenders like Geneva finance, not Turners.

[Classic]

Probably a newbie question sorry, but is there likely to be another dividend payout this year?
Historically sometimes there has been, other times not. Is there anywhere to find out that information?
I can find the historical data easily enough but not upcoming (until they have been announced).

[RTM]

Probably a newbie question sorry, but is there likely to be another dividend payout this year?
Historically sometimes there has been, other times not. Is there anywhere to find out that information?
I can find the historical data easily enough but not upcoming (until they have been announced).

https://www.nzx.com/instruments/TRA/dividends

You will find the NZX site quite useful, good luck.

[RTM]

Duplicate Post

[Classic]

Hi, thanks.
Yes, that is one of the places I looked.
July is the Final, but in 18 / 19 / 20 there has also been an interim in October, so my expectation (maybe optimistic - newbie remember ;-) ) was that there would be one this October?
Haven't seen anything to confirm that though.

Regards.

[Sideshow Bob]

Hi, thanks.
Yes, that is one of the places I looked.
July is the Final, but in 18 / 19 / 20 there has also been an interim in October, so my expectation (maybe optimistic - newbie remember ;-) ) was that there would be one this October?
Haven't seen anything to confirm that though.

Regards.

With alot of companies, historic dividend schedules have been messed up with Covid, especially if they took a prudent approach to conserving cash after the initial lockdown last year. Some companies have paid out later, paid special divvys or just maintained cash.

For TRA and an October divvy, might be a little late to announce now, but I guess just keep an eye out on their announcements.

[iceman]

Hi, thanks.
Yes, that is one of the places I looked.
July is the Final, but in 18 / 19 / 20 there has also been an interim in October, so my expectation (maybe optimistic - newbie remember ;-) ) was that there would be one this October?
Haven't seen anything to confirm that though.

Regards.

They have been paying out dividends quarterly & I expect that to continue. They have not yet made an announcement on the next dividend as far as I know, but I think it’s fair for us to assume it will be paid in November

[RTM]

Moola, being a payday lender, is probably looking to target the tier 3 consumers. This space was were Oxford used to play in. Not anymore. Oxford is now targeting (and attracting) higher credit score customers.

https://comcom.govt.nz/news-and-media/media-releases/2021/online-lender-moola-admits-failure-to-behave-as-a-responsible-lender

Not great advertising.

[sb9]

Its here finally, Q1 divvy of 5c with very short ex date of Monday 18th Oct. So pretty much we have today and next 3 days to get in to be eligible.

[Ggcc]

Its here finally, Q1 divvy of 5c with very short ex date of Monday 18th Oct. So pretty much we have today and next 3 days to get in to be eligible.

I’m guessing it was a difficult decision with Auckland in lockdown. It would Seem things are progressing really well for them to acknowledge this dividend

[winner69]

Divie 25% higher than last year

That’s a pretty good pay rise

[iceman]

Divie 25% higher than last year

That’s a pretty good pay rise

Certainly not to be sneezed at. All happening very fast with XD on 19th and payment date on 28th.

A bit like my experience at Turners in Christchurch yesterday when delivering a Fleet Partner lease vehicle. Great service. All done and dusted in 3 minutes. Well impressed. Didn't see Tina in person though.

[Beagle]

5 cents fully imputed, that's cool. Speaking of cool, Tina's so positive and bubbly I just want to give her a big bear hug to say thank you :)

[winner69]

Whose this Tina you guys talking about?

[Rawz]

Whose this Tina you guys talking about?

Tina is going to take TRA to the next level- national brand awareness. You think used car, you think Tina, you think Turners.

Tina is our Briscoes lady. :t_up:

[Beagle]

Whose this Tina you guys talking about?

Have you been living under a rock ? :p
https://www.youtube.com/watch?v=h1t4oTwk5Rs
https://www.youtube.com/watch?v=aAiGi7vzYuY
https://www.youtube.com/watch?v=gfmkpiE0VHU

Well said Rawz

[iceman]

Whose this Tina you guys talking about?

Turner's Tina

[Biscuit]

I’m guessing it was a difficult decision with Auckland in lockdown. It would Seem things are progressing really well for them to acknowledge this dividend

Yes, they say dividend reflects Q1 prior to lockdown was strong. Any negative effect of lockdown probably anticipated to be transitory.

[Rawz]

Yes, they say dividend reflects Q1 prior to lockdown was strong. Any negative effect of lockdown probably anticipated to be transitory.

Plus they will still be earning strong finance and insurance income through the lockdown

[Jonette]

Tina Turner (https://en.wikipedia.org/wiki/Tina_Turner) :t_up:

Seriously, Rotorua opened their sales in the last few weeks. My data on stock holdings suggests they started early September, but a quick check shows they have over 100 cars on Trademe. The average time to sell a car for Turners would appear to be about a month, so that may more than duplicate the Million dollars pa profit gain they quoted from opening Taranaki which only has around 80 cars at any one time.

[BlackPeter]

Tina Turner (https://en.wikipedia.org/wiki/Tina_Turner) :t_up:

Seriously, Rotorua opened their sales in the last few weeks. My data on stock holdings suggests they started early September, but a quick check shows they have over 100 cars on Trademe. The average time to sell a car for Turners would appear to be about a month, so that may more than duplicate the Million dollars pa profit gain they quoted from opening Taranaki which only has around 80 cars at any one time.

I asked a couple of years ago at one of their roadshows ... and at that stage they said their average stock turnover is something like 6 weeks. Obviously - this number might have changed (at that stage they had a legacy issue with slow moving stock from this other car dealer - I think it was Buy Right Cars - they purchased), but still - sounds pretty good, given that their margins are at current presumably quite healthy.

[Beagle]

https://www.youtube.com/watch?v=GC5E8ie2pdM

[Waltzing]

Yes Mr B, it looks like a break out on the chart building.

Im not sure the actor in the advert or actual employee should give up their day job.

[peat]

Yes Mr B, it looks like a break out on the chart building.



Yes there is ascending triangle formed which indicates a breakout on the upside is possible. RSI has bounced of oversold so certainly not a time to sell.
Volume is weak however, and I would think this needs to pick up before the hoped for price action can occur.13083

discl: long

[Davexl]

5 cents fully imputed, that's cool. Speaking of cool, Tina's so positive and bubbly I just want to give her a big bear hug to say thank you :)

Bang on Beagle, I had thought 6c or more - still very very nice...

[sb9]

The divvy announcement has barely moved the price..

[Beagle]

Why would it move the price mate ? Its bang on what the market expected.

[Marilyn Munroe]

they got rid of the case against them even if their counterclaims werent successful.

Commentary from a trade magazine if you are interested;

https://autofile.co.nz/turners-wins-court-battle-over-buy-right-cars-

While Turners won in court it is unsettling to note the case arose from the poor performance of the Buy Rite purchase.

Boop boop de do
Marilyn

[Jonette]

Commentary from a trade magazine if you are interested;

https://autofile.co.nz/turners-wins-court-battle-over-buy-right-cars-

While Turners won in court it is unsettling to note the case arose from the poor performance of the Buy Rite purchase.

Boop boop de do
Marilyn

That was a long time ago, the buyright sites were doing well after full transfer to Turners in last years AR, not even mentioned in this year. The case just took a while to go through the courts

[Beagle]

Win a car with Turners only eligible for people who are vaccinated to enter. https://www.nzherald.co.nz/promotions/vaxxed-you-could-win-a-car-with-turners/G44XHDKIDRWSX5WBHUKNKI2EZA/
Well done to Todd, Tina and the Team @ Turners, an excellent idea ! I hope some young family that really needs help with a replacement car wins it.

[sb9]

Gotta love those quarterly divvies as another one just landed in bank a/c :t_up:

[nztx]

Gotta love those quarterly divvies as another one just landed in bank a/c :t_up:


For sure .. with you there :)

[winner69]

Have you been living under a rock ?

Well said Rawz

Watching a doco on TVNZ On Demand today and an ad popped up ……it was that Tina you guys talk about

OMG ruined the viewing …..still recovering ….a shocking ad …put me off going to the place that Tina’s advertising……was it a tyre shop or something …..but whatever it didn’t like a place I’d go to that often

[Nor]

Watching a doco on TVNZ On Demand today and an ad popped up ……it was that Tina you guys talk about

OMG ruined the viewing …..still recovering ….a shocking ad …put me off going to the place that Tina’s advertising……was it a tyre shop or something …..but whatever it didn’t like a place I’d go to that often
Tend to agree - cringe.

[Snow Leopard]

Watching a doco on TVNZ On Demand today and an ad popped up ……it was that Tina you guys talk about

OMG ruined the viewing …..still recovering ….a shocking ad …put me off going to the place that Tina’s advertising……was it a tyre shop or something …..but whatever it didn’t like a place I’d go to that often

Careful there w. You are talking about the woman we love. :blush:

[Rawz]

Watching a doco on TVNZ On Demand today and an ad popped up ……it was that Tina you guys talk about

OMG ruined the viewing …..still recovering ….a shocking ad …put me off going to the place that Tina’s advertising……was it a tyre shop or something …..but whatever it didn’t like a place I’d go to that often


Tend to agree - cringe.

Way back, MHJ used to run ads and at the end Sir M Hill would appear and say, "Michael Hill, Jeweller".
They ran the ads many times in Aussie while trying to grow the brand. After awhile the aussies got so sick of them that they started to repeat the end of the ad but replace Jeweller with a word that rhymes with banker and starts with W. Lol.

Sir M Hill said thats when he knew the brand was mainstream in Aussie and he had cracked the market.

Tina seems to be doing a fantastic job here. 'OMG, Shocking, cringe'
Keep it coming. Keep pumping the ads :t_up:

[Beagle]

Careful there w. You are talking about the woman we love. :blush:

https://www.youtube.com/watch?v=aAiGi7vzYuY

Gotta say there is something about her infectious positivity that resonates with me but more likely really resonates with the target demographic. Tina is our "Briscoes" lady
Possibly not very P.C. of me to say but every time I get a dividend in the bank I want to give her a really big bear hug :)
The thought of giving Todd a big bear hug has never crossed my mind :lol: (Nice guy though).

[winner69]

Don’t see many ads …..whizz through them on fast forward (can’t do that TVNZ OnDemand) …so luckily had avoided this Tina up to now

Did watch the long ad that came up during the news last night with dogs in it ….right through to the end when an old geezer was taking a dog for a walk along the beach….. so sweet and moving I kept watching to see what was being advertised ….seemed to have something to do with trust or maybe banking ……lost me

[Muse]

https://www.youtube.com/watch?v=aAiGi7vzYuY

Gotta say there is something about her infectious positivity that resonates with me but more likely really resonates with the target demographic. Tina is our "Briscoes" lady
Possibly not very P.C. of me to say but every time I get a dividend in the bank I want to give her a really big bear hug :)
The thought of giving Todd a big bear hug has never crossed my mind :lol: (Nice guy though).

Re the TRA ad in the hyperlink above: tina has got one thing right for certain: money in the bank (for TRA shareholders!)

[Sideshow Bob]

Looking at You Tube, I see they also have Liam Lawson in a few clips

Liam Lawson's Must Haves for Car Buying - YouTube (https://www.youtube.com/watch?v=RSNiLr0xMJ8)

[winner69]

Don’t see many ads …..whizz through them on fast forward (can’t do that TVNZ OnDemand) …so luckily had avoided this Tina up to now

Did watch the long ad that came up during the news last night with dogs in it ….right through to the end when an old geezer was taking a dog for a walk along the beach….. so sweet and moving I kept watching to see what was being advertised ….seemed to have something to do with trust or maybe banking ……lost me

Saw it again …is a Trust Power ad …..togetherness ….old geezer with crook legs adopts a three legged dog and they go for walks along the beach.

[Beagle]

Retail opening next week should be good for Turners with all their vehicles outside people will feel safe to come along and kick some tyres and then complete all the paperwork and loan application documments online.

[dreamcatcher]

How a shortage of cars is putting the world's economy at risk.........interesting headline

https://www.smh.com.au/business/the-economy/how-a-shortage-of-cars-is-putting-the-world-s-economy-at-risk-20211102-p595am.html

[sb9]

Dropping few hints of an upgrade perhaps, snippet from their announcement this morning..

"Management will also provide an update on the robustness of trading during the Covid Level 3 and Level 2 conditions, plus insight into October trading."

[Beagle]

My take is this is a really resilient growing business that now has a well defined business model and it should grow very nicely indeed in the years ahead and its trading on very attractive metrics. Strong and enduring tailwinds exist for Turners and I expect that to remain the case for several years at least. That said all retail business's will have been affected by Covid in recent months. With this one, and I would argue HLG, its really easy to look through the current Covid malaise to the boom times ahead :t_up:

[Jonette]

My take is this is a really resilient growing business that now has a well defined business model and it should grow very nicely indeed in the years ahead and its trading on very attractive metrics. Strong and enduring tailwinds exist for Turners and I expect that to remain the case for several years at least. That said all retail business's will have been affected by Covid in recent months. With this one, and I would argue HLG, its really easy to look through the current Covid malaise to the boom times ahead :t_up:

in case people missed, Turners opened their Rotorua branch for business in late September, stocking up for a couple of weeks and raising the share of stock in the BoP market from 6% to 9%, about 100 extra cars. If they continue to sell cars at the same rate as their average, about 4 weeks to sell, then that is a bigger business than the Taranaki store which has around 80 cars. Todd noted last year that Taranaki added $1m to the bottom line, so I expect more from Rotorua.

I suspect they opened a new branch in Christchurch but maybe it’s just a big lot, anyone know?

Next up, Nelson!

[Ricky-bobby]

Nicely timed announcement. The share price was just starting to drift downwards…

[Beagle]

in case people missed, Turners opened their Rotorua branch for business in late September, stocking up for a couple of weeks and raising the share of stock in the BoP market from 6% to 9%, about 100 extra cars. If they continue to sell cars at the same rate as their average, about 4 weeks to sell, then that is a bigger business than the Taranaki store which has around 80 cars. Todd noted last year that Taranaki added $1m to the bottom line, so I expect more from Rotorua.

I suspect they opened a new branch in Christchurch but maybe it’s just a big lot, anyone know?

Next up, Nelson!

Welcome to the forum. Nicely said. I am sure Todd and his team will have more to say about store openings and their timing in the upcoming half year announcement.
In the meantime i note the tailwinds of:-
1. A very strong desire for personal transportation as compared to the readily apparent heightened risks of public transport
2. Second hand cars values rising and this is a phenomenon all around the globe
3. Huge stimulus being poured into the economy with Covid
4. Warmer spring weather in a wide open outdoor shopping experience (I will be very nervous to visit malls)
5. Shortages of new cars due to ongoing semiconductor and other raw material shortages, supply chain and shipping issues raising the attractiveness and pricing of second hand cars
6. Greater market penetration (as you have noted) leading to incresing brand value and brand recognition
7. The ongoing benefits of a concentrated advertising program lead by our "Briscoes" lady "Tina".

[Jonette]

Welcome to the forum. Nicely said. I am sure Todd and his team will have more to say about store openings and their timing in the upcoming half year announcement.
In the meantime i note the tailwinds of:-
1. A very strong desire for personal transportation as compared to the readily apparent heightened risks of public transport
2. Second hand cars values rising and this is a phenomenon all around the globe
3. Huge stimulus being poured into the economy with Covid
4. Warmer spring weather in a wide open outdoor shopping experience (I will be very nervous to visit malls)
5. Shortages of new cars due to ongoing semiconductor and other raw material shortages, supply chain and shipping issues raising the attractiveness and pricing of second hand cars
6. Greater market penetration (as you have noted) leading to incresing brand value and brand recognition
7. The ongoing benefits of a concentrated advertising program lead by our "Briscoes" lady "Tina".


I agree.
I would add that Turners is increasing their market share of stock by a reasonable amount in many regions. There is normally a seasonal increase in stock as the year progresses, I don't know of why, but this year, not only is the market inventory increasing, but Turners share in the market is increasing.
I hope it is not overstocking, but I expect it is deliberate as a call on some of your points.

[Biscuit]

Increasing interest rates and opening up of the borders in the coming year could put a bit of a dampener on car sales, but the shares still look reasonable value.

[peat]

Armstrong eyeing the stock market
Surprisingly they are bigger than Turners. but not as big as CMO


if we think as per ARV and OCA this could be quite a factor.

discl hold.

[Jonette]

Armstrong eyeing the stock market
Surprisingly they are bigger than Turners. but not as big as CMO


if we think as per ARV and OCA this could be quite a factor.

discl hold.

I presume you mean financial. How big are they really? I see Business desk makes a guess and bases size on revenue, but profit is the number I look for. CMO & Armstrong's are dependent on New cars, which sometimes have extremely small margins.

A quick check and the inventory of:
Turners 3,795 (all second hand)
Armstrong's 743 (Many New)
CMO Colonial Motors: 193 (Many New)

Revenue and Profits are interesting, Turners 2021 revenue is $296m, Colonial $901m, yet their profit after tax is almost identical at $26.9m and $24.8m respectively. Stock market values reflect this - TRA $363m and CMO $360m

Business desk may have it skewed.

[sb9]

What a stunning set of results, smashed them out of park..

• Expect net profit before tax for FY22 to be in the range of $40m - $42m (assuming current L3/L2 restrictions ease over the coming months).

• Based on the current dividend payout policy of 60-70% of NPAT we anticipate full year fully imputed dividends of 22 cents per share based on full year profit before tax of $40m.

• Our conviction levels are very high to exceed our target for $45m of NPBT in FY24 and we will revisit our FY24 target at year end.

[winner69]

Stupendous resut

Share price 5 bucks next week

Todd needs to update two road map slides

Roadmap to $5/share …
Over three years we target 31% growth in Underlying

[Beagle]

WOW that's a breath of fresh air for sure !!!!!!
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TRA/383046/359524.pdf

Absolutely stunning result and outlook. Now I want to give both Tina and Todd a big hug :D

Tina sums it up perfectly on page 9 !

[Rawz]

You can really tell how focused TRA are on its shareholders. Always pointing out growing profits and dividends, also discussing what the future earnings will look like.

With the growth ahead of them (no reason they cannot have 50+ sites nationwide) we will likely see not only eps and dps growth but at the same time expect a re-rate to higher multiples.

What a company

[Beau]

Excellent Result Thanks Todd and the Team it certainly is a very positive Company in very trying times.

[Jonette]

Here’s an interesting stat; $2m in extra revenue for Finance translated to $2.3m in extra operating profit!

Turners are as much a bank as they are a car sales business, increasing profits on lending while interest rates rise.

page 7

[winner69]

Is this TINA a tangible or intangible asset

Must be valued at few zillion ....increase book value etc etc

[sb9]

Word of the day "High Conviction", though repeated few times feels like music to ears.

And don't forget the unrealised property gains that keep inching higher and higher.

[LaserEyeKiwi]

Very impressive! - Congrats Todd!

[percy]

Incredible result [again],firing on all cylinders.

[Muse]

Wouldn’t it be grand if all investments could be like this

[BlackPeter]

Wouldn’t it be grand if all investments could be like this

Well, maybe like this and now. I remember times where Dorchester Pacific and later TRA sort of looked like going down the gurgler. There have been times I lost significant coin with both of them.

What I am saying is - make hay while the sun is shining, but don't assume the golden autumn will never end - and: Never fall in love with a stock!

[Rawz]

I have completely fallen in love with this stock (:p) and the huge runway of growth ahead of them. There is no reason they cannot have 50+ sites nationwide which is how many Toyota have. The new car market is changing and it wouldn't surprise me if one big franchise (ford, honda, mitsi etc) quit their used departments and give all trade in's to TRA to sell.

Most impressive is how they have transformed Oxford finance from a tier 3 lender to one that targets the tier 1 customers.

Turnaround businesses are the best businesses to invest in. MHJ was another. There is one other stock on the nzx right now that has been punished for no good reason since listing. there is a bag or two in that too

[Beagle]

I listened in to the webinar. All good. I am very comfortable with how they're building this business. 7% gross yield is very solid and their multi year track record of growing earnings and dividends is duly noted and in my opinion highly probably to continue in the future as they continue to grow the business.
Happy holder !
Disc: Added some more this morning.

[Muse]

I listened in to the webinar. All good. I am very comfortable with how they're building this business. 7% gross yield is very solid and their multi year track record of growing earnings and dividends is duly noted and in my opinion highly probably to continue in the future as they continue to grow the business.
Happy holder !
Disc: Added some more this morning.

Haha so did I! Bugger trying to make ones weighted average cost look as low as possible. Each morsel is its own discrete investment. Nice place to put some dough

[Rawz]

Interesting on the webinar their answer to the EV vs ICE question. Basically went as follows:

Q. what is the risk to TRA with the move from ICE vehicles to EV. Could TRA get caught out with too much ICE vehicle stock.

A. (CFO) the entire stock rotates every 2 months. We see the change from ICE to EV having negligible risk to TRA.

[Alekhine]

I asked the question re EV vs ICE at the webinar today, as I was a bit worried about it. I was pleased with the high turnover rate, but there may still be some hidden issues around this, so I will have to give it some thought. Given the government tax on petrol imports that kicks in next year, I think we will see a spike in petrol car sales before the end of the year, particularly in Auckland. On the whole, I like the team at Turners and think they have done really well.

[Jonette]

Interesting on the webinar their answer to the EV vs ICE question. Basically went as follows:

Q. what is the risk to TRA with the move from ICE vehicles to EV. Could TRA get caught out with too much ICE vehicle stock.

A. (CFO) the entire stock rotates every 2 months. We see the change from ICE to EV having negligible risk to TRA.

they commented last session in effect that the average turnover was 1 month and that lines up in my model with revenue numbers. I would like to check that again though. there are about 3000 cars on stock, if they sell all in a month, then that’s 9000 sales/quarter, $118m Auto revenue equates to $13,000 per car sold. The average car sale price at Turners is unknown to me, does anyone have a feel for that? $13k seems a bit low?

The average can be 1 month with the distribution being up to 2 months, consistent with the CEOs comment.

[clearasmud]

$13k must be on the low side these days.
More like $17k?

[Rawz]

they commented last session in effect that the average turnover was 1 month and that lines up in my model with revenue numbers. I would like to check that again though. there are about 3000 cars on stock, if they sell all in a month, then that’s 9000 sales/quarter, $118m Auto revenue equates to $13,000 per car sold. The average car sale price at Turners is unknown to me, does anyone have a feel for that? $13k seems a bit low?

The average can be 1 month with the distribution being up to 2 months, consistent with the CEOs comment.

Check what the avg loan amount is. I am sure that is disclosed somewhere in the annual report. That will be a good guide I would have thought. Sorry I dont have the number on hand.

[percy]

From 2019 agm presentation.
NZ’s largest buyer and
seller of vehicles
33
Locations in NZ from
Whangarei to Invercargill
9%+
Gross dividend yield within the
top 10 yielding stocks on NZX
6 mins
Turners sell 1 car every 6
minutes, which equates to
over 100 cars per day
200
We sell over 200 insurance
policies per day
900
We employ over 900 kiwis
across the business
40
We write over 40 consumer and
commercial loans per day in
Oxford Finance
$6m debt
Collecting over $6m per month of hard
to collect debt

[Jonette]

Check what the avg loan amount is. I am sure that is disclosed somewhere in the annual report. That will be a good guide I would have thought. Sorry I dont have the number on hand.

well done. It is $12,000, almost the first number on page 3.

that may exclude a deposit, so it still could be $13k or $17k, like clearasmud suggests

[Jonette]

Yes Percy, 100 cars per day is close to 3000 per month which is close to their average stock level.

[percy]

Yes Percy, 100 cars per day is close to 3000 per month which is close to their average stock level.

Remember they do not own all the cars they sell.It used to be 50%.Not sure what the current % is,most probably higher say 60%.
A great number are on consignment from fleet owners etc.
Also I would guess the average sale price is closer to $13,000 than $17,000.,

[Jonette]

Remember they do not own all the cars they sell.It used to be 50%.Not sure what the current % is,most probably higher say 60%.
A great number are on consignment from fleet owners etc.
Also I would guess the average sale price is closer to $13,000 than $17,000.,

when they auction a car, I wonder if that money goes through as revenue, even if they don’t own it?

thanks for your opinion on the price, the more I get the more likely we can get it right.

I wondered about the 100 per day, if I assume that is working days, ie 6 days a week then the average price is $15k.

[Jonette]

They list 60 cars for auction over the next 3 weeks, that is tiny compared to 3000 per 4 weeks (month), so auctions may not be too important anymore?

actually, that’s listings of all sorts, so is wildly inaccurate, sorry

[Muse]

New 12 month TP’s overnight. Craigs $5.25, Jarden $4.76. Both forecast net cash yields over 5% this financial year rising to 6% in FY24 at current spot price

[Beagle]

My updated target price 12 months from now is $5.60

[Louloubell]

I already had a nice parcel but have topped up. Many reasons for the tailwinds for the foreseeable future. I particularly like the straightforward communication and clear expectations of profits and dividends.

[Rawz]

I already had a nice parcel but have topped up. Many reasons for the tailwinds for the foreseeable future. I particularly like the straightforward communication and clear expectations of profits and dividends.

Agree 100% I feel like a company owner with TRA rather than a nuisance with some other companies

[sb9]

I already had a nice parcel but have topped up. Many reasons for the tailwinds for the foreseeable future. I particularly like the straightforward communication and clear expectations of profits and dividends.

Yes, its big turnaround especially when Chair Baker didn't show up (was online however) for ASM few years back as he tht attending prior committed car event overases was more important. Definitely more refreshing with him buying big chunk on market last year along with Todd.

[Jonette]

My updated target price 12 months from now is $5.60

My forecast revenue forecast for FY22 is $345m, profit $43.9m.

On that basis my DCF based target price for 12 months out is $5.65. Down from my earlier target of $5.90 - I overestimated 1H22.

Nelson is still to come online, so that may have a material impact on sales, but maybe not this half if it is delayed to next year. My previous forecast assumed Rotorua and Nelson would come online, only Rotorua did, so I guess that forecast was not quite as over-optimistic as I first thought.

[Beagle]

Yes all looking good for FY22 and beyond !

Cool story "Holden" back the years https://www.nzherald.co.nz/lifestyle/rare-1977-holden-monaro-now-with-son-of-original-owners/OTRJ7MMEJ6TSBBAOJSGYRS2PCE/ Gosh as teenager I used to absolutely adore the next door neighbors V8 Monaro.

[peat]

that is a great story , and it is totally on topic!

[Joshuatree]

Yes all looking good for FY22 and beyond !

Cool story "Holden" back the years https://www.nzherald.co.nz/lifestyle/rare-1977-holden-monaro-now-with-son-of-original-owners/OTRJ7MMEJ6TSBBAOJSGYRS2PCE/ Gosh as teenager I used to absolutely adore the next door neighbors V8 Monaro.

Yeah a guy at work had a yellow monaro with a big black stripe. I taped two stripes on the side of our pale blue austen cambridge and it was only at the last moment, dissuaded from going to his local hill climb event.:t_up:

[percy]

Yeah a guy at work had a yellow monaro with a big black stripe. I taped two stripes on the side of our pale blue austen cambridge and it was only at the last moment, dissuaded from going to his local hill climb event.:t_up:

How dare you bastardize my name.AustEn's have never had anything to do with AustIns.
Although at one time did own a Morris 1300 GT,which was a goer.

ps.I think an Austin Cambridge would be referred to as a Rollscanardle ;ie rolls down hills but can hardly get up them..........lol.

[Biscuit]

.... I taped two stripes on the side of our pale blue austen cambridge .....

Back when I had long hair and bell-bottoms, I spray painted large yellow spots on my dark blue Austin A40. I wasn't really going for a racing look though.

[Joshuatree]

How dare you bastardize my name.AustEn's have never had anything to do with AustIns.
Although at one time did own a Morris 1300 GT,which was a goer.

ps.I think an Austin Cambridge would be referred to as a Rollscanardle ;ie rolls down hills but can hardly get up them..........lol.


Whoops,LOL , slow and steady wins the race:t_up:

[Joshuatree]

Back when I had long hair and bell-bottoms, I spray painted large yellow spots on my dark blue Austin A40. I wasn't really going for a racing look though.

Heehee, those were the days when chocolate chip biscuits were psychedelic washed down with marque vu or chardon:t_up:

[Beagle]

My first girlfriend had a Morris minor back then. 0-60 miles an hour in about 2 minutes lol

[Joshuatree]

enough time for fore on the floor play ehh;)

[clearasmud]

My best friend had an Austin A55, Irish getaway car, foot to the floor everywhere.

[Snow Leopard]

I am renting an Hyundai I20. I am sure the Lane Safety Assist is trying to kill me!

Meanwhile still happy to hold on to Turners for the foreseeable future (i.e. while I remember to turn the Assist off everytime I turn the ignition key :eek2: ).

[Benny1]

My lane assist in my Kia Stinger is permanently off, can't stand it!

Happy to have bought into TRA a few months back and hope to add slowly to my opening position.

[Snow Leopard]

My lane assist in my Kia Stinger is permanently off, can't stand it!


:cursing:
In the UK:
Lane assist can be turned off, but for safety reasons it will always default back on again each time you get in your car.
:cursing:

TRA: good dividend and not over-priced.

[Benny1]

:cursing:
In the UK:
Lane assist can be turned off, but for safety reasons it will always default back on again each time you get in your car.
:cursing:

TRA: good dividend and not over-priced.
Well at least in the UK it is trying to kill you safely!

[Jonette]

I see two directors have exchanged shares, has anyone seen why? (Byrnes sold almost 400k shares to Petrie)

[Beagle]

My lane assist in my Kia Stinger is permanently off, can't stand it!

Happy to have bought into TRA a few months back and hope to add slowly to my opening position.

Same here. In my Holden Calais I always turn off lane assist and idle stop while waiting a few seconds for it to warm up. Both are a serious PITA.
Fortunately both buttons are right next to each other so its a simple one-two, affix seat belt, stick it in drive and go.
Congrats on your opening position. This is now my largest investment in the NZX because its easier to make progress with a good strong tailwind ;)

[clearasmud]

I see two directors have exchanged shares, has anyone seen why? (Byrnes sold almost 400k shares to Petrie)
Byrnes an x executive who's been selling down for years.

[Beagle]

TRA one of my high conviction holdings and picked in this years share competition. Still trades cum the 5 cent fully imputed second quarter dividend and the next two quarterly dividends will probably be 6 cps and continue into FY23 as I estimate 24 cps fully imputed dividends which puts TRA on a prospective forecast gross yield for FY23 of 7.5% gross. We're being paid very handsomely while we enjoy years more growth with this great value stock that's trading on compelling metrics.

[Louloubell]

I agree Beagle. Turners are my single biggest holding at just over 20% of my portfolio. A rosy future ahead for many reasons outlined by other posters and myself and clear communication about future earnings and divvies.

[Beagle]

This is their most recent outlook statement which I think is very conservative.

Based on the current dividend payout policy of 60-70% of NPAT we anticipate
full year fully imputed dividends of 22 cents per share based on full year
profit before tax of $40m.
o Our conviction levels are very high to exceed our target for $45m of NPBT
in FY24 and we will revisit our FY24 target at year end.

I think they'll comfortably do $45m before tax ($32.4m after tax = 37.7 cps) in FY23, a year early. That comfortably supports 4 x 6 cent fully imputed quarterly dividends and represents a 63.6% payout ratio, just under the half way point of the payout ratio range of 60-70%.

I am comfortable with a year end PE of 14 which on 37.7 cps = year end price target of $5.28 = 17% upside from here + ~ 7.5% gross yield = total forecast shareholder return of ~25%.

Final day to buy and enjoy the second quarter 5 cents fully imputed dividend paid on 27 January is Friday 14 January. Shares trade ex dividend on Monday 17th.

[Rawz]

I agree too, Beagle and Louloubell.

One does get the feeling that management know they have the business model set and know there is a long runway of growth ahead. The targets they are giving the market will be under what they privately believe they will hit. That's okay, its a funny world we now live in and who doesnt like upgrades

So over the next 5-10 years we will see:
- double digit growth p.a.
- very attractive dividends
- gradual p/e re-rate towards high teens once the company get a few more runs under their belt

[sb9]

Offer side pretty much non-existent atm.

[Ricky-bobby]

I’m in as well (35% of my portfolio!). Great divvy and a ceo at the helm who is super focused and very confident on delivering for his shareholders. Also nice to see the sell side down to just a few…

[Habits]

It is incredible that these shares were a buck each (ish) in the first quarter of 2020 and listed as one of the top yielding stocks then. Could be easily bought too

[winner69]

Share price all time high now (if you ignore the Dorchester days)

New slide coming up 'Pathway to $6 share price' .....the previous slide will be out of date by time next profit announcement

[Beagle]

I agree too, Beagle and Louloubell.

One does get the feeling that management know they have the business model set and know there is a long runway of growth ahead. The targets they are giving the market will be under what they privately believe they will hit. That's okay, its a funny world we now live in and who doesnt like upgrades

So over the next 5-10 years we will see:
- double digit growth p.a.
- very attractive dividends
- gradual p/e re-rate towards high teens once the company get a few more runs under their belt

I agree and that's how I see it too. Agree that once we see many years of steady growth then we should also see PE multiple expansion. A management team that are firing on all cylinders, a brand that's building increasing market awareness, a credit application process that after many years of refinement now seems to be working really well and strong and enduring sector tailwinds all add up to a stock that's showing considerable potential for shareholder wealth accretion over the years ahead. I really like that shareholders are being very well rewarded along the way with strong dividends while we enjoy the growth. This is a classic GARP (growth at a reasonable price) stock that really does tick all the boxes !

The one thing I would suggest they consider tweaking is to perhaps change the dividend policy to ~ 80% of earnings and introduce a dividend reinvestment plan. I believe this would enhance the opportunity for shareholders looking for yield while contemporaneously leaving Turners with more cash for expansion.

[winner69]

I agree and that's how I see it too. Agree that once we see many years of steady growth then we should also see PE multiple expansion. ...............

How many more years of steady profit growth is needed to see the PE expand?

[Beagle]

Nice chart mate, thanks. In my view its probably three. Once you have half a decade of steady profit growth and the clear prospect for more I think its highly likely the market will sit up and take proper notice. We could see it then move up into the 15-18 range with, in my opinion, about the mid point being most likely. That's how I foresee it...but as with anything so far in the future, only time will tell :)

Be good if they surprised the market with $43m this year and a new target of $55m for FY24 and road map to $7 for 2025 wouldn't it...couldn't possibly happen, or could it ? ;)

[winner69]

Nice chart mate, thanks. In my view its probably three. Once you have half a decade of steady profit growth and the clear prospect for more I think its highly likely the market will sit up and take proper notice. We could see it then move up into the 15-18 range with, in my opinion, about the mid point being most likely.

Stocks with high payout ratios seldom see much in the way of PE expansion .... so often seen / perceived as undervalued on that basis.

[Rawz]

Stocks with high payout ratios seldom see much in the way of PE expansion .... so often seen / perceived as undervalued on that basis.

Why is that master Winner?

[Muse]

Stocks with high payout ratios seldom see much in the way of PE expansion .... so often seen / perceived as undervalued on that basis.

Few exceptions. Skellerup - per your chart

[winner69]

Why is that master Winner?

High payout ratios and PE expansion don't always follow.

Something I've observed over the years but there does seem some rationale as to why it happens.

One reason is that companies with high payout ratios are seen by 'serious' investors as companies whose growth is possibility limited (not reinvesting profits to drive growth) and as such not seen as true growth stocks and desrving of high multiples. As a consequence dividend yield is the driver of share price.

Seems a reasonable way of looking at things. Besides TRA stocks like HGH and HLG seem to be valued this way .... good dividends etc but often seen cheap as on a PE basis.

Been many academic finance papers written over the years on this subject but not always conclusive - market behaviour not always rationale eh. But discussions around P/B Ratios, ROE, PE ratios, PAyout ratios and how they are all interlinked is always quite interesting.

One interesting thing about TRA is that its Book Value has only grown at 6%pa over the last 5 years (to Mar 21) even though NPAT has grown at about 12% pa. See what a high pyout ratio does.

Never mind - they will doing that slide and changing the heading to 'Pathway to $6 share price'

[winner69]

Few exceptions. Skellerup - per your chart

SKellerup must be telling a better story …..a real growth story …and valued accordingly

[BIRMANBOY]

At the time you could say that about many more of the listings...bargains galore...gee I wonder why? Wonderful example of emotion, trading signals and short term horizons driving the market. Snooze you lose...I bought at 1.16 , kept having to raise my buy price and the next time my order was filled was at 1.40...so a lot of fundamental investors as well as traders would have done well. The people who sold off in a panic on the way down would be having hindsight vision as well. Most all of the the big drops on the NZX from the covid cliff have recovered and gained. So obviously the lesson is (if you are not trading), keep buying on the dips and is panic a good investing strategy?
It is incredible that these shares were a buck each (ish) in the first quarter of 2020 and listed as one of the top yielding stocks then. Could be easily bought too

[Beagle]

I got a few at $1.60 in April 2020 during the first lockdown. Added more in the early - mid $2's later that year. Its feels really satisfying making big bucks from a car dealer as I'm normally the one paying the car dealers the big money lol

[stoploss]

I got a few at $1.60 in April 2020 during the first lockdown. Added more in the mid $2's later that year. Its feels really satisfying making big bucks from a car dealer as I'm normally the one paying the car dealers the big money lol
It looks like the best hedge you could ever have. Although the electricity IPO's were hard to beat.

[winner69]

Plenty of action in the car market

I suppose that for nearly every new car there's a used car somewhere

https://www.interest.co.nz/business/113918/2021-ends-more-30-all-new-passenger-cars-sold-being-either-battery-powered-or

[Louloubell]

I don't think this share needs any ramping Winner! 🤣

[Ggcc]

Had an interesting discussion with local car dealer and how they are moving away from HGH lending and rather using Oxford for their simplicity. The Marac loans have recently been very difficult to deal with, as it takes up to a couple of days to allow the loan and how they require proof of income.

I’m seeing this share really taking off when the next announcement arrives as to how well they are doing. With Auckland all open the figures will most certainly take off.

[Rawz]

Had an interesting discussion with local car dealer and how they are moving away from HGH lending and rather using Oxford for their simplicity. The Marac loans have recently been very difficult to deal with, as it takes up to a couple of days to allow the loan and how they require proof of income.

I’m seeing this share really taking off when the next announcement arrives as to how well they are doing. With Auckland all open the figures will most certainly take off.

Its a nightmare. I have a friend that works for UDC, she told me they have created an entire new team to verify income because of the new CCCFA regulations. Cant see how Oxford can get around the extra admin?

HMY have their cool technology where at application stage you log into your bank account via their system and their system talks to your bank and verifies your income. Very fast and easy for the customer and all done via machine unlike HGH/Marac, UDC or Oxford who will have humans doing it.

These damn fintechs moving in on traditional asset funders patch!!!

Best bet is to have a bob each way I reckon ;)

[Ggcc]

Its a nightmare. I have a friend that works for UDC, she told me they have created an entire new team to verify income because of the new CCCFA regulations. Cant see how Oxford can get around the extra admin?

HMY have their cool technology where at application stage you log into your bank account via their system and their system talks to your bank and verifies your income. Very fast and easy for the customer and all done via machine unlike HGH/Marac, UDC or Oxford who will have humans doing it.

These damn fintechs moving in on traditional asset funders patch!!!

Best bet is to have a bob each way I reckon ;)
All this AML and income verified is getting just ridiculous. Wouldn’t it be so easy for your accountant or lawyer to send this sort of stuff to a universal website, which all lenders could access with customer approval so that we did not have to fill in pages of information every single time. Someone created Xero with the same in mind to simplify the complicated.

[Rawz]

All this AML and income verified is getting just ridiculous. Wouldn’t it be so easy for your accountant or lawyer to send this sort of stuff to a universal website, which all lenders could access with customer approval so that we did not have to fill in pages of information every single time. Someone created Xero with the same in mind to simplify the complicated.

Everyone knows if you slow the supply of credit the economy slows. These regulations have been put in place to help the vulnerable from getting bad debt. Problem is normal middle class borrowers cannot get good debt!!

https://www.oneroof.co.nz/news/home-loan-crisis-ive-had-people-in-tears-ive-had-people-shouting-at-me-40737

"Mortgage brokers are reporting that clients who thought they had finance in the bag are being refused, sometimes after going unconditional on purchase..... The credit crunch is real, says Alexander. It started hitting borrowers towards the end of last year, with banks telling customers they had previously approved that the finance was no longer available."

All good, the regulators know what they are doing. Probably avoiding a big bubble

[sb9]

Just like last year, I'm picking we might see an announcement re earnings upgrade later this month.

[toddhunter]

Its a nightmare. I have a friend that works for UDC, she told me they have created an entire new team to verify income because of the new CCCFA regulations. Cant see how Oxford can get around the extra admin?

HMY have their cool technology where at application stage you log into your bank account via their system and their system talks to your bank and verifies your income. Very fast and easy for the customer and all done via machine unlike HGH/Marac, UDC or Oxford who will have humans doing it.

These damn fintechs moving in on traditional asset funders patch!!!

Best bet is to have a bob each way I reckon ;)

Happy New Year everyone...Oxford have been very early adopters of comprehensive credit scoring (this information gives us an immense amount of data on a customers payment history with credit cards, loans, utility bills etc.), we have been early adopters of tools that help automate income verification and affordability assessments, and affordability assessments and income verification have been a core part of the Oxford credit process for over 3 years now.

We made a deliberate decision to own the development and IP of our front end loan application system. This "front end" application system integrates into an "off the shelf" loan management system in the back office. This makes us much more agile, gives us control and we can be more responsive and quick in turnaround of improvements. Also the great thing about owning our own Auto Retail business is that we can test the systems internally before we role them out to the broader market.

[DazRaz]

HMY have their cool technology where at application stage you log into your bank account via their system and their system talks to your bank and verifies your income. Very fast and easy for the customer and all done via machine unlike HGH/Marac, UDC or Oxford who will have humans doing it.

No way would I log on to my bank account using someone else's computer let alone enter my credentials into someone else's application. Cool tech? Security nightmare more like.

[Rawz]

Happy New Year everyone...Oxford have been very early adopters of comprehensive credit scoring (this information gives us an immense amount of data on a customers payment history with credit cards, loans, utility bills etc.), we have been early adopters of tools that help automate income verification and affordability assessments, and affordability assessments and income verification have been a core part of the Oxford credit process for over 3 years now.

We made a deliberate decision to own the development and IP of our front end loan application system. This "front end" application system integrates into an "off the shelf" loan management system in the back office. This makes us much more agile, gives us control and we can be more responsive and quick in turnaround of improvements. Also the great thing about owning our own Auto Retail business is that we can test the systems internally before we role them out to the broader market.

That is very pleasing to hear Todd, thanks for your post. Especially since you started this 3 years ago- ahead of the competition! Love it

[Hugo]

It still seems like slow season of the holiday, so let me share one of those consumer magazine situations that played out in real life for me yesterday:


Hello <Turners>,

I just wish to express my extreme disappointment with my recent interaction with Turner's Christchurch branch.

We viewed a vehicle yesterday. We were told the price was non-negotiable as it was an "on behalf of sale". I rang this afternoon to agree purchase of the vehicle. The invoice (attached) I received was for $11,730 - a surprise as the price was $10,230. I emailed back with an image (attached) taken at time of viewing showing sale price of $10,230. I then received a 15min phone call justifying why Turner's could change price.


Changing the agreed price is not the behaviour that I would align with Turner's statement:


We’re proud of our company history and our reputation as a brand to be trusted.


Do feel free to contact me for further details.


Thank you.


Hi <Hugo>


I’m sorry to hear that this has occurred. I have investigated with the branch and it appears that this was a genuine mistake, unfortunately due to human error. Given that the vehicle is not owned by Turners, there is nothing that can be done in this instance.


We sell thousands of vehicles every year without a hitch to happy customers and are justifiably proud of our record. Everyone does make mistakes however and I believe that we have been as upfront as we could be about this mistake. We will of course be doing everything we can to prevent this type of mistake from happening again.



Hi <Turners>,


Thank you for looking into this for me and for your response.


I recognise genuine mistakes are made.


However, Turners, in good faith, should honour contracts made with their customers.


Turners avoiding responsibility, by blaming their own poor process, does not amount to good faith.


Thank you.

[winner69]

Hugo .. I can sense your frustration / disappointment

But you know what they say about used car salesmen eh ….can’t trust the rogues

Did you end up buying the car …at the higher price?

[Hugo]

Hugo .. I can sense your frustration / disappointment

But you know what they say about used car salesmen eh ….can’t trust the rogues

Did you end up buying the car …at the higher price?


Nah. I had the manager who blathered on for 15 mins on speaker phone. And the wife's expressions, as she listened in, covered a wide range. Any deal now, other than that originally agreed, is off the table. ~

[ratkin]

I have bought all my cars from Turners chch and I have never had a single problem with the branch. Have not seen many “on behalf of” cars there. Seems like in this case there may have been a mix up between the owner and the intermediary (Turners). It sounds like a genuine mistake, and not some shady practice they use to extract more money from people.

[Rawz]

You’re a tough man to please, Hugo. Hope you don’t make mistakes in your line of work.

Actually kinda petty posting here. Clearly you know Todd reads here. Manager not enough, must get your message right to the top eh

[Hugo]

Yes, I bought a Swift with the daughter from there with no issue a couple of years back. It worked well then so that’s I went back with the boy for a repeat.

[Hugo]

Hmm. Thanks for your perspective Rawz. There’s a bunch of narratives you could ascribe to the situation.

[winner69]

Should have got hold of Tina to sort it out :)

Or if that didn’t work got Clarke on the speaker phone :t_up:

[toddhunter]

Hugo could you email me directly who you were dealing with at Christchurch Branch please? todd.hunter@turners.co.nz

This does sound like a "learning" opportunity particularly in the way we communicated it to you. Mistakes do happen (fortunately relatively infrequently in our case) but it is always in the handling of these that make or break an experience. We do sell a lot of cars on behalf of major lease companies and government departments so it seems in this case the incorrect price (by $1,500) was on the car for whatever reason.

Anyway sorry for the experience you have had and we can only try and do better if you give us the opportunity to next time. Hope to hear from you directly. Thanks Todd

[Hugo]

! Good morning! Thank you. I will get in touch shortly. I was thinking more about Rawz’ post and I feel defensive about it. I’d add that it’s not about the mistake, it’s about being given to understand a deal has been done and then finding out that’s not the case. It just seems a principle thing. The price on it was what I understood the price to be. I put effort into research and checking out how much to fix the panel damage on it. Hmm. Thanks.

[Rawz]

… I put effort into research and checking out how much to fix the panel damage on it. Hmm. Thanks.

Fair enough, Hugo. Not ideal

[winner69]

Bugger, we made a mistake but you can have the car for $10,230 …and here’s a little gift for the bother. …….shareholders wouldn’t begrudge the $1,500 as a rare event

As my old mate Alan used to say ‘it’s the putting right that counts’

[toddhunter]

Sure understand Hugo...look forward to hearing from you. Just to confirm though this is a genuine error by one of our team, not some "pricing" tactic, that is absolutely not what this business is about.

[Hugo]

OK. Have just sent Todd an email, basically forwarding the original email string but including the two images referenced. I've come back to the forum now and see the above posts. I do feel it necessary to underline that I completely agree with what Todd has said above. In no way do I think this was a pricing tactic. I personally rate Turners' ethics. That's why I went there.

[Hugo]

And not looking to undermine my case, but, and probably stating the obvious, this is a sharp industry that Turners works in. And you can easily image a narrative whereby an "operator" sees the disparity in value (the salesman evidently didn't) and takes adavantage of that by purchasing the vehicle and then onselling. I may be naive in imaging that simpe a scenario, but what I'm trying to acknowledge is that I expect that this would be a not untypical type scenario for Turners' to often deal with. And if I was shareholder, I'd want them to be wise to all tricks.

[iceman]

Great of you to respond like that Todd. Well done.

[Beagle]

Great of you to respond like that Todd. Well done.

Hear Hear ! I really appreciate Todd engaging with shareholders on here. He's the only CEO of a listed company to do so and I think its wonderful that he does !

[Antipodean]

Hear Hear ! I really appreciate Todd engaging with shareholders on here. He's the only CEO of a listed company to do so and I think its wonderful that he does !
Technically we did have another CEO engaging on these forums a few years back... just not openly and that was not a positive experience.

I'll add a plus one to this sentiment. As a customer and investor in Turners I have been happy for many years.

[winner69]

Jeez Hugo …..you’ve made the TRA share price tumble 3.3% today

[Old mate]

Funny I thought the same:t_up:

[Muse]

Jeez Hugo …..you’ve made the TRA share price tumble 3.3% today

nice ******* work hugo

[Hugo]

S**t! Now, if only I could harness the power to get the price to go the way!

[Hugo]

Well that was gullible of me. I see the stock price is likely under xd influence.

[ratkin]

Does sound like a genuine mistake, however as the price was displayed at 10,500 and a tentative agreement for that price had been reached then that is the price Hugo should have been given. Turners should have borne the cost of their own mistake, not the customer.

[LaserEyeKiwi]

Back in with a position, hopefully long term this time.

[pierre]

A retailer is not contractually obliged to honour an advertised price if it was an honest mistake.

Communication is the key - but few customers are likely to be happy to be asked to pay more than the sticker price - especially if the difference is $1500.

What to do if the price tag isn't right — business.govt.nz (https://www.business.govt.nz/news/what-to-do-if-the-price-tag-aint-right/)

[Hugo]

Just responding to Ratkin, it's surprising the number of factors that had to align, that lead to the problem. For example, we went into Turners physically to check out what they had, and get a reference from that. We then did research online to compare what was available elsewhere. If we'd done our research online first, we'd have included Turners' website and seen online the price they intended to price the vehicle at. And we would've picked up on the discrepancy, with the sticker price in the car window, when we went in to inspect. Also, another coincidence, was that there was another similar car on the lot with same sticker price. So we got busy thinking about comparison of features, etc. The pricing wasn't the only focus.
Anyways, looking to wrap this up, did end up talking with Mr Hunter. What he likely won't mind me sharing is that he commented that I was holding Turners to a very high standard of conduct. And I agree. And what I'd also share is that I had a sorta vague sense of injustice but Todd was able to articulate the exact aspect where the issue impacted me. From my perspective. And that was the sorta turning point. Validating my perspective. So that delivered me from nursing a grievance (who wants to be a whiner?) to being back on board.
And in summary, after that discussion, I'm more than happy to be an advocate for Turners.

[Beagle]

Hugo must be a market mover. When Hugo's not happy Turners shares go down and when Hugo is happy they go up. Maybe us shareholders should all pitch in and get Hugo a free car from Turners lol...or speaking of cars and Hugo...maybe some KFC ?, Who on here remembers this iconic early advertisement starring Hugo ? https://www.youtube.com/watch?v=0dIQSEPcmFk

[Rawz]

I have been pondering about the CCCFA changes and the impacts it has had on the likes of Heartland/Marac and UDC.. going off what Todd said earlier regarding Oxford being an early adopter of income verification automation.. it could very well turn out to be a game changer for Oxford and advance the business forward a few years compared to its current trajectory. I.e. I hope Oxford have signed up a lot of new dealers or is getting a bigger share of finance from existing dealers..

Looking forward to seeing the numbers in the next round of reporting :)

[Jonette]

Well he did say Autosure has 50% of the market at the last chat. My guess is that the two are closely linked, but as you say, wait and see.

[Beagle]

Looking forward to the dividend, forget if its tomorrow or Friday its paid and 5 cps fully imputed for the second quarter and 5 cps for the first quarter.
Target this year seems to be 22 cps so the next 2 quarters should be 6 cps and it wouldn't surprise me if it stays at 6 cps after that, maybe about 24 cps next year fully imputed and if so that's 24/ 0.72 = 33.33 cps gross which represents a gross yield of 7.8% on today's closing share price of $4.28 Very attractive yield indeed considering this is a growth company with a clearly articulated plan to grow earnings and dividends even further in the future.

Plenty of tailwinds here...everyone will want their own personal transportation for obvious health and safety reasons.

[Grimy]

Paid tomorrow.

[Jonette]

Some regions have more room to grow (https://datawrapper.dwcdn.net/mETjM/8/)

13449

[winner69]

Things not going to plan at NZ Automotive -

New Zealand based integrated used automotive group NZ Automotive Investments Limited (NZAI / the Company) (NZX:NZA) advises of lower than expected revenue, as a result of lower car, finance and insurance product sales during the December and early January period.

Ha ha …. TURNERS BEATING THEM HANDS DOWN

[Rawz]

Things not going to plan at NZ Automotive -

New Zealand based integrated used automotive group NZ Automotive Investments Limited (NZAI / the Company) (NZX:NZA) advises of lower than expected revenue, as a result of lower car, finance and insurance product sales during the December and early January period.

Ha ha …. TURNERS BEATING THEM HANDS DOWN

Oxford must be making big gains and creaming it

From NZAI announcement: "The recent changes in the CCCFA lending standards have also impacted on finance and insurance product sales, due to time delays and consumers taking time to adjust to the new requirements."

Well done to Oxford for being early adopters of income verification technology.. well ahead of the curve

[Beagle]

Oxford must be making big gains and creaming it

From NZAI announcement: "The recent changes in the CCCFA lending standards have also impacted on finance and insurance product sales, due to time delays and consumers taking time to adjust to the new requirements."

Well done to Oxford for being early adopters of income verification technology.. well ahead of the curve

Hear hear, well done to Todd and his senior team.

[Jonette]

Things not going to plan at NZ Automotive -

New Zealand based integrated used automotive group NZ Automotive Investments Limited (NZAI / the Company) (NZX:NZA) advises of lower than expected revenue, as a result of lower car, finance and insurance product sales during the December and early January period.

Ha ha …. TURNERS BEATING THEM HANDS DOWN

The difference being that NZA stocked up with cars early December, but Turners early November. However Turners sold their stock by the end of December before the traditional glut of private vehicles came on the market, while NZA did not respond and actually had more stock in January than in December. Margins are tight, so small errors like that cost heaps.

[SCOTTY]

Paid tomorrow.

Dividend payable today (27th)

[777]

Dividend payable today (27th)

But grimy did post that yesterday.

[Jonette]

The difference being that NZA stocked up with cars early December, but Turners early November. However Turners sold their stock by the end of December before the traditional glut of private vehicles came on the market, while NZA did not respond and actually had more stock in January than in December. Margins are tight, so small errors like that cost heaps.

NZA seem to be blaming everything in sight on BusinessDesk this morning: https://businessdesk.co.nz/article/listed-companies/low-emissions-vehicles-backfire-on-nzai
“Management is not seeing the expected bounce back in sales previously experienced following the first covid-19 lockdown,” it said.
This slowdown has been compounded by NZAI’s decision to stock up on low emissions vehicles that would qualify for the government’s clean car rebate.
The rebate was supposed to be implemented from the start of the year but has been pushed back to April, negatively impacting sales expectations of these car types.
“The business had expected to see a lift in demand of low emission cars in January, which it would benefit from,” NZAI said.

Realistically, they did not manage their stock to the market conditions, trying to jump the gun on imported EV and PHEV vehicles. Then they did not have Turners contactless purchasing (NZ Automotive Investment (NZAI) said having covid-19 in the Auckland region was reducing the number of sales rather than just delaying when they happen) Contactless purchasing seemed to ensure Turners stock continued to turnover during Auckland lockdown.

[Louloubell]

Received my dividend, which I used to buy more Turners shares. It is, IMHO, the company which will go from strength to strength despite the economic challenges on our doorstep.

[dreamcatcher]

Received my dividend, which I used to buy more Turners shares. It is, IMHO, the company which will go from strength to strength despite the economic challenges on our doorstep.

Bit like the US dollar so hope Turners have plenty of forward currency cover

[percy]

Bit like the US dollar so hope Turners have plenty of forward currency cover

As the majority of their stock is sourced in NZ, I doubt they will require a great deal of forward currency cover.

[Beagle]

Received my dividend, which I used to buy more Turners shares. It is, IMHO, the company which will go from strength to strength despite the economic challenges on our doorstep.

Well said, I agree 100%.

[winner69]

WTF --- did I see a 416 share price

Heck that's 12% off from it was early Jan

Even allowing for the 5 cent divie 460 seems a long way off now

[Muse]

WTF --- did I see a 416 share price

Heck that's 12% off from it was early Jan

Even allowing for the 5 cent divie 460 seems a long way off now

Aye - nice short/medium term dividend yields off this price.
I might be wrong but I recall TRA saying they would revisit their medium term NBPT targets and update the market at some point (probably because they will have met them far earlier!). But as part of that it would be great to see some management discussion and analysis on the impact of rising second hand car prices, and what may happen to profitability once those elevated prices normalise at some point. They *will* go down, might not be this year, or even next year...but as a shareholder it is something in the back of my mind.

[BlackPeter]

WTF --- did I see a 416 share price

Heck that's 12% off from it was early Jan

Even allowing for the 5 cent divie 460 seems a long way off now

SP flirting with the EMA 200 (@417) :scared: Anyway - looks like buyers are now pushing upwards (and keen sellers disappearing). Maybe just one of these bounces at the EMA 200? If it holds this must be bullish ...

[Jonette]

It looks like an off-market deal of ~20,000 shares. Bryan Gaynor was discussing these on BusinessDesk.
The reason I speculate it’s off market, but being reported, is that there are 25,000 shares waiting to buy at prices above 416 up to 425.

[SCOTTY]

It looks like an off-market deal of ~20,000 shares. Bryan Gaynor was discussing these on BusinessDesk.
The reason I speculate it’s off market, but being reported, is that there are 25,000 shares waiting to buy at prices above 416 up to 425.

What did Brian Gaynor have to say about Turners?

[Jonette]

Nothing, he was discussing that NZX has a very low level of on-market dealing, under 40% I recall. He was actually hammering NZX for losing its market.
This trade looks off-market but I don’t know NZX reporting requirements

[SCOTTY]

Nothing, he was discussing that NZX has a very low level of on-market dealing, under 40% I recall. He was actually hammering NZX for losing its market.
This trade looks off-market but I don’t know NZX reporting requirements

Thanks Jonette. Much appreciated :)

[blackie]

hang on a minute..
bought some of these this morning..... and they have finished up.??!!
well well, that's different for me :eek2:

[Beagle]

hang on a minute..
bought some of these this morning..... and they have finished up.??!!
well well, that's different for me :eek2:

LOL - Yeah I know the feeling. The last 4-5 months have such hard work it almost feels weird when you make money for a change.
I still think these are a great growth and yield stock where you're paying stuff all in terms of the PE multiple to enjoy that growth.
Classic GARP stock but almost everyone seems to think the blue chip market darlings are the answer. Time will tell.

[Muse]

LOL - Yeah I know the feeling. The last 4-5 months have such hard work it almost feels weird when you make money for a change.
I still think these are a great growth and yield stock where you're paying stuff all in terms of the PE multiple to enjoy that growth.
Classic GARP stock but almost everyone seems to think the blue chip market darlings are the answer. Time will tell.

Given the strength of management and financial profile I think its safe to declare TRA as a blue chip small/mid cap.

[Rawz]

Oxford has very large upside potential

[Beagle]

Given the strength of management and financial profile I think its safe to declare TRA as a blue chip small/mid cap.

BINGO, I couldn't agree more ! Tina wear's blue and she's a winner, the corporate colour is blue, their site's have blue signage, the annual return is blue and even the presentations are in blue http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TRA/383046/359524.pdf

[Louloubell]

It would be nice to have a trading update, please Todd 😊

[Rawz]

It would be nice to have a trading update, please Todd 

Probably cant keep up with all the money Oxford will be making ;)

[winner69]

Sell some good stuff at Turners

https://www.turners.co.nz/Trucks-Machinery/Auctions/1001-63640/?sortby=date&pagesize=24&pageNumber=1&utm_source=facebook&utm_medium=social&utm_campaign=FB-Trucks-SEL-Unimog-TOF&utm_content=ad_post

Somebody was asking if they any good at towing vehicles with signs over them

[Louloubell]

Was thinking of buying some of these, but then looked at the prices of fuel and decided against it ⛽😉

[Beagle]

Was thinking of buying some of these, but then looked at the prices of fuel and decided against it ⛽��

You could always catch a train or a bus that comes with the very good chance of a completely free "bonus" Omricon infection.

[Ggcc]

Was thinking of buying some of these, but then looked at the prices of fuel and decided against it ⛽😉
In my many years I have noticed lots of people have money for cars. They will moan over the price of a meal and buy a Holden Commodore which guzzles the gas. Many people I know are looking for cars and having to up their budgets.

[Azza]

Deleted post

[Azza]

Sell some good stuff at Turners

https://www.turners.co.nz/Trucks-Machinery/Auctions/1001-63640/?sortby=date&pagesize=24&pageNumber=1&utm_source=facebook&utm_medium=social&utm_campaign=FB-Trucks-SEL-Unimog-TOF&utm_content=ad_post

Somebody was asking if they any good at towing vehicles with signs over them

If it is anything like the ones i still have to work on it will outlast most of us! ��

[blackie]

https://www.stuff.co.nz/travel/news/124845651/queenstown-tourism-company-go-orange-selling-off-controversial-unimog-fleet

[winner69]

https://www.stuff.co.nz/travel/news/124845651/queenstown-tourism-company-go-orange-selling-off-controversial-unimog-fleet

Jeez ..taking a unimog along the Skippers road …I was terrified in a small 4WD

[Beagle]

Jeez ..taking a unimog along the Skippers road …I was terrified in a small 4WD

Its a REALLY challenging road for sure. I remember decades ago driving it and feeling quite scared as a young fella. There days with blood pressure an issue I'd definitely not drive it again. One of my favorite Top Gear episodes is when the team did the death road in Bolivia. Never seen Jeremy Clarkson look so genuinely afraid than at one point when the road nearly caved in on him. I think the guys earned their pay that week !

I don't feel sorry for that company if they take a bath on those vehicles, in fact quite the opposite, its payback time ! They've been bending local Kiwi's over for many years with their prices on leading tourism activities. Queenstown has a reputation as a VERY expensive place to holiday because of companies like them assuming everyone has Euro's in their pocket not $kiwi

Good example, short trip on the Earnslaw and BBQ lunch and they want $129 https://www.realnz.com/en/experiences/dining/walter-peak-gourmet-bbq-dining/

[Old mate]

Really you think a 4 hour activity including a farm display and food is overpriced?

[Ggcc]

Really you think a 4 hour activity including a farm display and food is overpriced?
I would have to agree with you. That is not a lot of money in the grand scheme of things for what you are getting, getting chauffeured around and food. Try going to an accountant with $129 for 3 and a half hours, you will just end up with getting advice from the secretary.

[Mammoth]

Really you think a 4 hour activity including a farm display and food is overpriced?

Yes, Wayfare are actually one of the pretty good crowds. The Earnslaw alone is worth every cent and they have had some really great family deals lately. Seriously don't get me started on Shotover Jet though....

[Beagle]

LOL maybe you guys have a point. Quite obviously I can afford it and have done it with my family and yes it was a lot of fun and I really LOVE the Earnslaw. Actually the people running the whole show are super nice and really made the trip. Have been on Earnslaw many times and done the Doubtful sound and Milford sound cruises with Real Journey's too.

I guess my point is can the average Kiwi family afford it though ? Maybe they should do special deals for Kiwi's spending $Kiwi not American dollars or Euro's ?

Maybe that's not the best example and $159 for the 20 minute Shotover Jet ride is a better example, (acknowledge owned by one of the Maori tribes not the company that owns the Earnslaw).

[ralph]

Definitely the shotover is a better example of overpriced /hyped Queenstown trash Beagle ,the Earnslaw is a gem.

[Beagle]

Definitely the shotover is a better example of overpriced /hyped Queenstown trash Beagle ,the Earnslaw is a gem.

No argument from me. I love looking down and seeing a workings of the steam engines and the stokers shoveling coal into the furnaces.

[Czechmate]

Is this a travel site? I must have crossed threads somewhere.

[Beagle]

Turners sells travel, they sell cars that people travel in :p

[Czechmate]

I enjoy and respect your stock posts Beagle but the site is called "Sharetrader"

Excuse me if I have lost my sense of humour somewhere!

[blackie]

20,371 posts to 8.........
checkmate:t_up:

[peat]

no announcements this year
and it is now getting closer to the end of their FY 22
presumably they know how they're tracking now or very soon.
so if no announcements then expect FY22 NPBT to be within the range of $40-$42m (~10% growth) as per their last year announcement. this is pretty close to 50cps = pretty close to 30cps div so will the quarterly divs be bumped up to 7 cps?


market sentiment is a bit poor though so price can falter in line with that presenting opportunities
If it goes as low as 4 I will pick up some more. for now holding

[Beagle]

Its easy to get tripped up with TRA's before tax numbers and forget to convert them to after tax...I've made that mistake in the past. $42m before tax suggests about $30m after tax which is ~ 35 cps. Divvy payout ratio is 60-70% so at 65% of 35 cps = 22.75 cps for the current year. They've paid 2 x 5 cent quarterly divvies already so I am expecting the next one to be 6 cps and the final one to be either 6 or 7 cps.


FY22 guidance $40m - $42m: Based on the particularly strong Q1, stronger
trading following the L4 lockdown, and assuming L3/L2 restrictions ease over
coming months, we expect FY22 NPBT to be between $40m and $42m. On that basis
and with our dividend payout policy of 60-70% of NPAT we anticipate full year
fully imputed dividends of a minimum of 22 cents per share.


High conviction on FY24 target: We continue to develop our competitive moat
through this time, which is positioning us for an even stronger performance
in FY23 and FY24. Our conviction levels for exceeding our medium-term term
target for FY24 of $45m NPBT target are very high and we will revisit our
FY24 target at year end.

Nice one blackie.

[Louloubell]

I couldn't resist but top up on the current weakness in the share price. There are the world events (Ukraine and high prices of oil and inflation and covid. Then the lack of TRA news is the culprit for the SP drifting lower over the recent weeks. I might end up as a top 10 shareholder in Turners if I keep topping up. 😜 All company communication is positive and specific. Time will tell whether I'm a stud or dud.

[Beagle]

I couldn't resist but top up on the current weakness in the share price. There are the world events (Ukraine and high prices of oil and inflation and covid. Then the lack of TRA news is the culprit for the SP drifting lower over the recent weeks. I might end up as a top 10 shareholder in Turners if I keep topping up. �� All company communication is positive and specific. Time will tell whether I'm a stud or dud.

Interesting comments from Heartland in the media today saying the new consumer lending reg's are causing them big headaches with car loans.
Todd Hunter commented on here a while back they had initiated a good plan to deal with the issues so I would think that gives them a competitive advantage which is not insignificant considering the lending division is the most profitable one !

I don't think you can go too far wrong at this price. I have a truck load already.

[Ggcc]

I couldn't resist but top up on the current weakness in the share price. There are the world events (Ukraine and high prices of oil and inflation and covid. Then the lack of TRA news is the culprit for the SP drifting lower over the recent weeks. I might end up as a top 10 shareholder in Turners if I keep topping up. 😜 All company communication is positive and specific. Time will tell whether I'm a stud or dud.
I think great buying at these levels if future income is not jeopardised by lending rules. I’m happy to keep holding and bought a few more yesterday as well as part of my balanced portfolio

[Louloubell]

In regards to Turners I can't say my portfolio is balanced. Am still a firm believer that they will deliver what they say they would.

[Ggcc]

In regards to Turners I can't say my portfolio is balanced. Am still a firm believer that they will deliver what they say they would.
In a couple of weeks time we should get an indication as to how business is doing and whether we get an upgrade or not.

We might see the share price drop a little more, but I would hate to miss out if they are doing what they say they are doing and maintaining momentum. If they are performing better than expected we should see a share price above $5 within 6 months or less

[winner69]

Back on topic -

Today in History 24 Feb 1912, SS Earnslaw launched on Lake Wakatipu

[Louloubell]

Stuff newspaper today: "Stats NZ said total sales volumes rose 8.6 per cent, once seasonally adjusted, in the last three months of the year, compared to a 8.2 per cent fall in September, which was the result of the Delta lockdown.

Strong rises were seen in motor vehicles and parts retailing, up 22 per cent."

An indication that all was well in Q3 at Turners.

[Beagle]

Stuff newspaper today: "Stats NZ said total sales volumes rose 8.6 per cent, once seasonally adjusted, in the last three months of the year, compared to a 8.2 per cent fall in September, which was the result of the Delta lockdown.

Strong rises were seen in motor vehicles and parts retailing, up 22 per cent."

An indication that all was well in Q3 at Turners.

Yeap, who would want to get on a bus, train or plane at present ? I think travel by one's own car has never looked more appealing !

In terms of the current Q4 environment I would think walking around in the open air on a car lot is probably the safest bit of shopping its possible to do and clearly confers tremendous safety compared to any other form of transport !

[sb9]

As per NBR, another car dealer could be floated on NZX...

Armstrong's testing the IPO waters again
Management reportedly on non-deal roadshow with institutional investors.
Car dealer group Armstrong’s is apparently progressing with its plan to list on the NZX and ASX share markets, after embarking on a series of meetings with institutional investors.

Re TRA, think we really a trading update to confirm earlier guidance, especially in light of new CCCFA lending rules.

[Rawz]

Doesn’t no update in a way confirm guidance? Continuous disclosure and all that

[Louloubell]

That is the conclusion I've come to Rawz.
And that is good news.

[winner69]

Todd to Grant: Grant, the guys and gals at Sharetrader are dead keen to know how well we’re doing.

Grant: We’re not due to report to May. Bit early to come clean yet

Todd: That’s a long way off for those impatient guys and gals

Grant: OK then, give them an update next week but Todd you temper your enthusiasm and only increase guidance a bit. Leave the rest for end of April

Todd: will do

[percy]

Todd to Grant: Grant, the guys and gals at Sharetrader are dead keen to know how well we’re doing.

Grant: We’re not due to report to May. Bit early to come clean yet

Todd: That’s a long way off for those impatient guys and gals

Grant: OK then, give them an update next week but Todd you temper your enthusiasm and only increase guidance a bit. Leave the rest for end of April

Todd: will do

Winner69 and Beagle to Grant and Todd.
Leave it to us.
We know what we are doing.
Just confirm our projections when you are ready....................lol.

[Louloubell]

I'm expecting an announcement about the quarterly divvies and a trading update this month

[Ggcc]

Third quarter dividend announcement coming most likely next week, like last year 9th. Looking forward to the upgrade……… I mean update.

[Beagle]

Winner69 and Beagle to Grant and Todd.
Leave it to us.
We know what we are doing.
Just confirm our projections when you are ready....................lol.

https://www.youtube.com/watch?v=B8KC0nyWCY4

[winner69]

Oxford must be making big gains and creaming it

From NZAI announcement: "The recent changes in the CCCFA lending standards have also impacted on finance and insurance product sales, due to time delays and consumers taking time to adjust to the new requirements."

Well done to Oxford for being early adopters of income verification technology.. well ahead of the curve

Hey rawz, a question

Oxford has the best processes to meet the new regs ….but does the verification etc mean they have to reject more applications than they might have done pre regs.

[Rawz]

Hey rawz, a question

Oxford has the best processes to meet the new regs ….but does the verification etc mean they have to reject more applications than they might have done pre regs.

My understanding is the HGH and UDCs of the world are still approving the same levels of finance.. the big issue is when the car loan application is sent for drawdown and the new verification piece comes in. You see these cheeky customers/car dealers/brokers were entering not so accurate expenses or income into their systems. The funders had to literally create entire new teams to verify the inputs which is when it was rejected, then re-worked, then re-approved, then loan settled. Most of it still gets financed. But very annoying for the car dealer and customer. Should be sorted up front! Not conditionally approved.

Todd's post earlier in the year gives comfort that Oxford technology sorts it upfront. Much better and more reliable for the car dealers. And I reckon Oxford has won heaps of new business (dealership) relationships

Todd said this earlier:

Oxford have been very early adopters of comprehensive credit scoring (this information gives us an immense amount of data on a customers payment history with credit cards, loans, utility bills etc.), we have been early adopters of tools that help automate income verification and affordability assessments, and affordability assessments and income verification have been a core part of the Oxford credit process for over 3 years now

[Beagle]

Hoping for a trading update and 6 cps dividend announcement any day now, (announced 10 March last year).

[Louloubell]

Yep, this will give the share price some momentum in the right direction as long as the results are as expected and communicated.

[Rawz]

"Oxford see record volumes" :t_up:

[DeathByWarriors]

They've been eerily quiet lately. Hoping for a decent upgrade as part of the announcement.

[Ggcc]

My guess it will be known by the end of this week , although who knows in these times. Everyone is focused on Ukraine and gas prices.

[LaserEyeKiwi]

https://www.stats.govt.nz/news/card-spending-drops-in-february-as-omicron-spreads

todays stats NZ Feb figures show a slowdown in motor vehicle sales for Feb (Omicron Impact)

[DeathByWarriors]

Do people really use cards to purchase vehicles though or is that for other vehicle related expenses (excluding petrol)? Most cards have a daily transaction limit around $10k anyway

[LaserEyeKiwi]

Do people really use cards to purchase vehicles though or is that for other vehicle related expenses (excluding petrol)? Most cards have a daily transaction limit around $10k anyway

It's measuring like for like. Previous measurements have pretty well matched vehicle sales activity.

[Jonette]

Using sales from Waka Kotahi - https://nzta.govt.nz/resources/new-zealand-motor-vehicle-register-statistics/existing-fleet/

General Trader Sales look poor since July 2021 when the Auckland lockdown started, NOTE, this includes all traders, and many such as 2Cheapcars (NZA.NZ) stopped selling entirely. Turners stock was reduced severely in Oct, so they may have had a boomer quarter, they are the biggest trader, but in lockdown they don't drive the trader data.

Dunno yet, I'm waiting to see the next results to see if my assumptions hold - I upkeep an interesting data set.

13605