It is heart-wrenching to see Samoans buying cars from dealerships where Samoans are employed to attract them. I feel this is the right time to expose the theft happening at these car dealerships.
Please read this before you decide to buy a car.
For families and friends looking to buy cars in New Zealand, this is an explanation of how most car dealerships in New Zealand operate, their tactics for targeting people, and why Indians are particularly interested in the Samoan market.
Example of Overpricing
Let me use one example to illustrate the theft at car dealerships.
I asked a 25-year-old young man on Sunday how much his car, a 2011 Nissan Juke, cost. He told me $30,000 NZD.
I didn’t say anything because I saw the young man happy, feeling blessed by God for his car. But I couldn’t remain calm, seeing how Samoans are being deceived by car dealerships, especially Indian-owned dealerships that employ Samoans to attract other Samoans to buy cars.
I asked about car prices because I understand the market value of different cars from my previous job experience. So please continue reading as I break down how these dealerships target Samoans.
Tactics Used by Dealerships
Here’s an example of how many Samoans are buying second-hand cars from dealerships that employ Samoans.
For example, the 2011 Nissan Juke this young man bought for $30,000 NZD. The correct market price for that car in New Zealand, with mileage between 40,000 and 80,000 km, is around $8,000 to $11,000 NZD. So why is it $30,000?
Most Indian-owned car dealerships in New Zealand purchase cars from other dealerships at a retail price of $8,000. Then they add $10,000 on top of that price and sell the car to you for $18,000. But you could go and get the same car for $8,000 at retail price if you shop around – just don’t go to the dealerships advertised on the radio.
I feel sad for the $30,000 spent by these trusting individuals, especially when these young men are taking out their first loans. Their desire to get a car is being taken advantage of.
Two Ways Dealerships Steal From Samoan Buyers
There are two primary ways these dealerships deceive Samoan buyers:
- Markup Prices
As I mentioned earlier, $30,000 was paid for a car with a market value of $8,000 by a Samoan young man with good credit, taking out his first loan.
You see, the car’s market price is $8,000, the correct retail price. But these Indian dealerships, which employ Samoans, are selling it for $30,000 to someone eager to get a car. That means they made a profit of $22,000 on top. This isn’t the first time Samoans have told me about the prices of their cars, and it continues to break my heart for our people. - Interest Rates
Dealerships also manipulate interest rates, especially for buyers with bad credit.
The standard interest rate offered by finance companies is around 6%. However, dealerships often add an additional 3% or more to this rate, misleading buyers with quotes of 9% or higher. In some cases, they claim rates as high as 23%, stating that the buyer’s credit is poor. The truth is, the finance company’s rate is still only 6%, and the rest – 17% – is the extra profit added to the dealership’s total.For example, with a $30,000 loan, paying $180 per week for five years adds up to $46,000 NZD in total payments, for a car that’s only worth $8,000. The remaining $38,000 consists of markup and interest added by the dealership, trapping the buyer in an overpriced loan.
Advice for Samoan Car Buyers
If you’re looking to buy a car in New Zealand, here are some critical tips to avoid falling into these traps:
- Shop Around: Don’t settle for the first dealership you come across, especially those advertised on the radio. Look for European-owned dealerships or others that offer fairer prices.
- Know the Market Value: Do your research and know the market price of the car you’re interested in. Cars from 2008-2011 should not cost more than $8,000, and cars from 2012-2015 should be under $13,000.
- Avoid Cashback and Referral Deals: These seemingly attractive offers are often traps, with the costs hidden in your loan repayments.
- Ask for Help: If you’re unsure about a car’s value, seek help from someone who understands the market. Don’t rely on the dealership to give you a fair deal.
Many Samoans in New Zealand are working hard and paying far too much for their cars because of unscrupulous dealership practices.
Before making a purchase, take your time, shop around, and ensure you’re getting a fair deal. Don’t let your desire for a car lead you into financial hardship.
Tūsia i le gagana Sāmoa
Ua tiga alofa i tagata Samoa o loo faatau taavale i fale ta’avale o loo fa’afaigaluega ai tagata Samoa e fai a latou fa’atosina.
Oute iloa ose taimi lelei lenei e ao ona ou fa’ailoa ai le gaoi o fale taavale.
Faitau muamua ae le’i filifili e faatau sau taavale.
Mo aiga ma uo o loo fia fa’atau ni a latou ta’avale i Niu Sila. O le fa’amatalaina lea o le fa’agaioiga o le tele o fale ta’avale i Niu Sila, o a latou talosaga mo tagata, ma le mafuaaga e fiafia ai Initia i le maketi a tagata Samoa.
O le a ou fa’aaogaina mai se tasi o mataupu e fai ma faataitaiga o le gaoi a fale ta’avale.
Na ou fesili ile Aso Sa ile tasi o taulealea 25 tausaga, pe fia le tau o lana taavale ituaiga (Juke Nissan 2011). Ae fai mai o ia $30,000 NZD.
Na leai sau tala aua ou te vaai atu o loo fiafia le taulealea ile fa’amanuiaga ale Atua mo ia. Ae ua leai ma sou filemu i lou vaai alofa i tagata Samoa o loo faavalea e faletaavale. Aemaise lava fale ta’avale a tagata Initia, ua avatu tagata Samoa e fa’afaigaluega ai ina ia tosina atu ai tagata Samoa e fa’atau a latou taavale.
E mafua ona ou fesili i tau o ta’avale a tagata, ona ou te malamalama i market price value o ta’avale eseese mai la’u galuega sa ou faigaluega ai muamua. Ae usi mai lau faitau – sei talatala atu le fa’agaioiga e faleta’avale o latou pisinisi agai i tagata Samoa.
Fa’ataitaiga:
Ole tele o taavale second-hand o loo fa’atauina mai e tagata Samoa mai fale ta’avale o lo’o fa’afaigaluega ai tagata Samoa.
Fa’ataitaiga: Ole (Juke Nissan 2011) lea e $30,000 NZD na faatau ai e si taulealea lea lana taavale.
Ole price value sao ole taavale lea ile maketi i Niu Sila, pe a fai e laiti maila (40-80 afe maila), e $8,000 – $11,000 NZD. Aisea la e $30,000?
Ole tele o fale ta’avale a Initia i Niu Sila, latou te faatau mai taavale mai isi fale ta’avale ile retail price $8,000 NZD. Ona latou fa’aopopo lea iai le isi $10,000 i luga ole tau, ma fa’atau atu lea ia te oe ile $18,000 NZD. Ae e mafai lava ona e alu e aumai lau ta’avale ile $8,000 ile retail price, pe a fai ete ta’amilo solo ae aua le alu i fale ta’avale o loo fa’asalalauina i leitio.
Oute fa’anoanoa i le $30,000 lea na faatau ai e nei tagata le ta’avale, aemaise lava ona o loo ave ai le loan muamua a si taule’ale’a lea. Ua ave le naunau i le fia maua o se ta’avale ma fa’aāoga ai tagata.
E lua itu o loo gaoi ai fale ta’avale i tagata Samoa:
- Mark-up price
- Interest rates
Mark-up price:
Pei ona ou faailoa atu le fa’ataitaiga $30,000 NZD ua faatau mai ai le ta’avale, ae o lona market value o le $8,000 ile taule’ale’a e lelei lona credit ma o lea faatoa fai sana loan mo se taimi muamua. O le taavale o le $8,000 le retail price sao, ae ua toe fa’atau atu e Initia nei ile $30,000 NZD i tagata o loo naunau i se ta’avale. O lona uiga, e $22,000 NZD le polofiti fa’aopo’opo.
E le’o le taimi muamua lenei ua fa’amatala mai ai e tagata Samoa le tau o latou taavale ia te au. Ua tupu lava le tiga alofa i lou loto mo nai o tatou tagata.
Interest rate:
Ole interest rate o le tasi lea o me’a o loo pepelo mai ai fale ta’avale i tagata Samoa, aemaise lava i latou e leaga le latou credit.
O le pepelo lenei a fale ta’avale i interest rates. Soo se finance lava o loo deal ma fale ta’avale i totonu o Niu Sila, e iai le latou rate e ave i fale ta’avale. Ole tele lava o rates e ave e finance ile fale ta’avale e 6%. Soo se taimi lava ete faalogo ai ole interest rate e 9%, o lona uiga e 6% le rate sao a le finance ae 3% o le polofiti a le fale ta’avale.
E iai foi taimi e fai mai ai fale taavale o le interest rate e 23% ona e leaga le credit. Aua ne’i fa’aseseina outou, e 6% lava le interest rate a le finance, ae o le isi 17% ua fa’aopo’opo i luga ole polofiti a le fale taavale.
Fa’ataitaiga:
Ole taavale a le taulealea lea e $30,000 NZD, ae o lona tau moni ole $8,000 le retail price. Fa’aōpopo iai e le fale taavale le latou polofiti o le $22,000. Ona toe fa’aōpoopo ai lea ma le interest rate. Mo se faataitaiga, $180 ile vaiaso le totogi ole taavale mo le 5 tausaga.
Afai $180 x 52 weeks ole tausaga = $9,360 ile tausaga. Ona faateleina lea ile 5 tausaga = $46,000 NZD le tupe e totogi i le 5 tausaga mo se taavale e $8,000 lona tau.
Aua ne’i galo ia te oe, ole taavale 2011 lona tausaga, o lona uiga ua 12 tausaga le matua ole ta’avale. Afai e uma le 5 tausaga, e le aoga foi le ta’avale, o lona uiga e toe fa’atau foi e le tagata le isi ta’avale.
Fautuaga:
O loo faigaluega malosi tagata Samoa i totonu o Niu Sila e totogi nei taavale. Fa’amolemole, aua ete faatauina lava se ta’avale ae le’i alu e taamilo solo i isi fale ta’avale. E tele fale ta’avale a papalagi ma isi fale ta’avale e mafai ona e sefeina ai lau tupe.
Fautuaga mulimuli:
Aua lava aua ne’i e fa’atau se taavale mai fale taavale e fai a latou cashback ma referrals, aua o loo i luga uma o lau loan. E tele fale ta’avale o loo faia lenei mea. Sue se tasi e mālamalama i le tau o ta’avale e fesoasoani ia te oe.
O le a tou fesili pe faapefea ona ou iloa nei mea?
Sa faaui a’u e le Atua i se taimi o lau faigamalaga. O fale taavale, e le’o se pisinisi māma.
So’o se ta’avale 2008-2011 e le tatau ona sili atu ma le $8,000 lona tau. So’o se ta’avale 2012-2015 e le tatau ona ova ma le $13,000.
Atonu o le a fesoasoani lena ia te oe.
