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NZTA uncovers EV subsidy scandal: Dealers pocket millions

EV subsidy scheme news

The New Zealand Transport Agency (NZTA) has discovered nearly 200 instances where car dealers unlawfully pocketed electric vehicle subsidies of up to $7,000 per car by selling them prematurely.

The dealers signed declarations stating they would retain the vehicles as demonstration, courtesy, or company cars for a minimum of three months but failed to comply. As a result, the transport agency has directed these car yards, which remain unidentified, to return the funds.

During December, the final month of the ‘Clean Car’ Discount program, almost a fifth of the government subsidies for electric vehicles went to car yards instead of individual buyers. Throughout the scheme’s duration, over 192,000 rebates were issued, with 21,000 of those going to dealers, accounting for a little over a tenth of the total rebates.

Internal advice released to state media under the Official Information Act revealed that the Ministry of Transport informed NZTA at the scheme’s inception that providing rebates to dealers who quickly resold cars did not align with the Government’s policy of awarding rebates to ‘consumers.’ It was, however, deemed consistent with policy if dealers signed a declaration to keep the cars for three months, although the rationale for the three-month period remains unclear.

In December, more than 10,000 subsidies were claimed: 1,906 by car dealers compared to 8,488 by individual purchasers. The spike in car yard rebates that month prompted NZTA to enhance its compliance monitoring.

Earlier this year, a potential buyer approached state media, claiming they had been offered cars in January and February from dealers who admitted registering the vehicles in December to claim subsidies before the rebates ended.

Initially, NZTA reported receiving only one complaint about misuse of the scheme. However, it later emerged that an anonymous complainant had provided details of over 200 vehicles allegedly misrepresented for sale by dealers who claimed rebates within the three-month stand-down period. The complainant requested an investigation into potential breaches involving 231 advertised vehicles across 51 dealers.

It remains unclear how many of those alleged breaches are among the vehicles now subject to repayment by NZTA.

Initially, NZTA investigated the tip-off and informed the complainant’s representative that staff believed only six of the listings were in breach. Meanwhile, another complainant who reported being offered a car within the no-resale period was told his complaint would not lead to enforcement action. NZTA informed the man, who wished to remain anonymous, that while the dealer’s offer breached the rebate terms, the lack of an actual sale resulted in a formal warning but no repayment requirement—a decision the complainant described as ‘a total cop-out.’

In a recent email to state media regarding enforcement figures, the agency stated it could not provide further details: ‘It is important that NZTA/Waka Kotahi protects the integrity of its investigations into alleged breaches of the scheme. As such, we cannot comment on the detail of investigations currently underway. Where a breach has been identified (i.e., a vehicle has been sold before the three-month period), a repayment of the rebate is required,’ the agency stated.

Image credit: Unsplash+

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4 COMMENTS

  1. In a fair and just world they would…………..
    Not in New Zealand, home of rort and corruption and a justice system that is nothing but a parasitic legal scam.

  2. When I go to the mall I always make sure to unplug all the empty electric cars I see.

    We all have to do our part 😊

  3. The Deep State / NWO / PTB / Zio-Communists want us to live in cramped and attached dog kennels, within the confines of a ‘:15 Minute City’ where we will all be monitored, with Social Credit scores and a monetary system of UBI paid in CBDC’s that are grudgingly meted out to the profane, and unenlightened masses.
    Recent vehicle computer upgrades means that your vehicles, previously monitored without regards to range or distances, are now programmed to be shut-down when your Social Credit scores drop-off, or you travel beyond the :15 Minute Habitation Restriction!
    Never park next to an EV, because when they go full-blowtorch, they take the vehicles parked next to them as well.
    While China, the U.S. and India pump out tonnes of Carbon MONOXIDE (NOT Dioxide…) and thousands of aircraft are cruising the stratosphere pumping out hot exhausts with alu-barium fuel additives resulting in Chemtrails, don’t think for one minute that I’ll be complying with ditching my LPG-powered 2004 Ford Falcon, and my STC’d Cessna 172!!!

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