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

[dreamcatcher]

Real estate agent at our coffee group has been bemoaning the huge drop off in property sales since the beginning of the year - waste of time having open homes (a basic requirement to win a listing) during the weekends but she has no choice but to continue to do so.

As to why she is feeling such an exponential hit on her income, her observation is that the good years leading to 2017 had attracted a huge increase in real estate agents and when you have less sales as now, the equation is most distressing indeed to income levels.

Car sales dropping and looking around at the proliferation of used car yards all over Auckland (cannot comment on other parts of NZ), the same can only be true as well of car dealers.

More car dealers + less car sales = lower margins = less profits.

To add to real estate agents problems appears property prices still dropping for June ..........and you are correct, far too many car yards and unofficial dealers that Turners supply lining most streets with For Sale notices on windows. Anybody with a few bucks can import cars in competition is dwindling the gravy pot.

[dreamcatcher]

What your friend told you is contrary to what I, and Turners see.
The second hand car sales yards are contracting,ie fewer yards and fewer dealers.
This is perhaps one of the reasons Turners are gaining market share.

Anyone that survives contracting car yards is gaining "market share" not just Turners but also allows more profitable road side dealers or Trademe dealers...........

[percy]

Compliance costs and more regulations, are driving the small importers out of the market.

[dreamcatcher]

Compliance costs and more regulations, are driving the small importers out of the market.

A family of 3 can sell 6 vehicles EACH per 12-months period in NZ without being registered as a motor vehicle trader. Add parents to that FAMILY brings numbers to 30 vehicles............ No Yard, No Warehousing, No compliance

[percy]

Well I was replying to imports,where compliance costs and new regulations are driving small importers out of the market..

Yes your family can sell a good number of vehicles.That has always been the case.I worked at ChCh Ford dealer,Hutchinson Motors, 1966 to 1969,and the guys in the parts dept used to have competitions who could trade the most cars each weekend.
Since that time the market has freed up more,yet Colonial Motor Co.[owners of Hutchinson Motors] have grown,and Turners have grown in the past 50 years to become the largest retailer of second hand cars in NZ.and have the strategy in place to grow further.
ps.Turners North Shore site in Archers Road is looking as though it will be fantastic when it is finished.

[Balance]

Well I was replying to imports,where compliance costs and new regulations are driving small importers out of the market..

Yes your family can sell a good number of vehicles.That has always been the case.I worked at ChCh Ford dealer,Hutchinson Motors, 1966 to 1969,and the guys in the parts dept used to have competitions who could trade the most cars each weekend.
Since that time the market has freed up more,yet Colonial Motor Co.[owners of Hutchinson Motors] have grown,and Turners have grown in the past 50 years to become the largest retailer of second hand cars in NZ.and have the strategy in place to grow further.
ps.Turners North Shore site in Archers Road is looking as though it will be fantastic when it is finished.

Suspect you may find that Turners overall market share is down when you add Right Cars market share to Turners.

Turners have had to perform radical surgery on Right Cars - with post surgical complications in the law suit!

Biggest retailer of used cars in a downturn means biggest impact on them as well.

[percy]

Yes BuyRight Cars lack of performance added to Turners North Shore closure,[compulsorily acquired by NZTA,]together with softer Auckland market added plenty of challenges.The law suit,I know as much as you.
Rebranding BuyRight Cars to Turners, together with a new fantastic North Shore branch at Archers Road, and a new branch at Westgate,should see Turners well placed,in Auckland.
The last big down turn in NZ used car market [think it was 2009/2010] did not affect Turners a great deal.

[Balance]

Yes BuyRight Cars lack of performance added to Turners North Shore closure,[compulsorily acquired by NZTA,]together with softer Auckland market added plenty of challenges.The law suit,I know as much as you.
Rebranding BuyRight Cars to Turners, together with a new fantastic North Shore branch at Archers Road, and a new branch at Westgate,should see Turners well placed,in Auckland.
The last big down turn in NZ used car market [think it was 2009/2010] did not affect Turners a great deal.

Turners was principally an auction house then, remember?

[percy]

Turners was principally an auction house then, remember?

Yes,I remember it well.
So today with the better margins retailing, rather than wholesaling.they are in a much stronger position.
Add on finance ,insurance ,and property development margin, I would have to say I think they are "well positioned,."


I am taking another leave from this thread.
I am not going to change my mind,neither is anyone else.
Pointless.

[Balance]

Yes,I remember it well.
So today with the better margins retailing, rather than wholesaling.they are in a much stronger position.
Add on finance ,insurance ,and property development margin, I would have to say I think they are "well positioned,."


I am taking another leave from this thread.
I am not going to change my mind,neither is anyone else.
Pointless.

Actually, auctioning in bad times is good business.

Retailing in bad times? Volume decreases along with margins.

Finance, insurance and property development (TRA style) feed off retail volumes - as they were "well positioned" on the way up, they are going to feel the ill effects "positioned" on the way down.

Explains I think why the likes of Milford (& Paul Brynes) are taking the opportunity to get out - the share buyback being a godsend as far as they are concerned!