Pictured above: Blaine Barratt (left) and Ken Quigley (right).
Portage Cars, a well-established dealership in New Zealand with seven locations across the country, is navigating the twists and turns of a rapidly changing automotive industry. With a strong commitment to customer service and vehicle quality, the dealership is embracing the rise of digital platforms and shifting buyer preferences, all while maintaining the trust they’ve built with customers nationwide.
Since its acquisition in 2018 by Director Ken Quigley, Portage Cars has been driven by a commitment for going the extra mile to ensure customer satisfaction.
Ken, with 25 years of experience in logistics and extensive work with Japan and Canada on car exports, has brought a wealth of knowledge to the business. His expertise in international trade has allowed Portage Cars to secure high-quality vehicles and meet the evolving needs of its customers.
The car dealership has also earned the prestigious recognition of being one of only seven preferred dealerships in New Zealand to partner with the AA. This partnership has been important for building trust with customers, who know they are not only purchasing a vehicle but also receiving long-term support.
“Whenever anyone buys a car from us, they know that it comes with the assurance of AA roadside assistance plan for 12 months as well,” says General Manager, Blaine Barratt.
The AA partnership means Portage Cars vehicles undergo two additional checks on top imported from.
“To be a partner with AA means doing two extra checkups – an inspection and an appraisal – on top of the four checkups done in Japan,” Blaine says.
Every car receives a thorough AA inspection, including stripping down components such as wheels and interior panels, followed by a mechanical check to ensure no hidden issues.
“On top of that, all cars also undergo a WOF check, NZTA inspection, and a final inspection as well as a service by our operations team.”
Ken takes pride in this rigorous process.
“There’s a lot of people that just skip four or five of those steps. They bring a car in from Japan, they put it to compliance, wash it up, clean it, and then chuck it on the yard, right? We’ve gone well above and beyond on that process to make sure that we’re putting out a product that we’re happy selling.”
Managing market demands
Portage Cars carefully tracks customer trends across the country, responding to regional preferences with a tailored approach to stock.
In Auckland and Wellington, for example, hybrid vehicles like the Toyota Prius and Aqua are particularly popular due to their fuel efficiency and suitability for city driving.
“They are economical and good for the city traffic,” Ken says.
In contrast, utes are the top sellers in more rural areas where durability and practicality are key factors.
Ken closely monitors customer patterns and adjusts the dealership’s inventory accordingly.
“When considering what cars to bring in from Japan, we watch buyers’ patterns closely and replace the stock that has been sold,” Ken explains.
This flexibility allows Portage Cars to stay competitive in a fluctuating market, where consumer preferences can change quickly.
One of the biggest challenges Portage Cars currently faces is sourcing hybrid vehicles.
“Hybrids are some of the most popular cars at the moment,” Ken says.
However, high demand worldwide makes it difficult to secure these vehicles at auctions in Japan.
“The competition is through the roof when the auction happens in Japan. There are other markets all around the world chasing electric vehicles and hybrids, so they’ve become very, very expensive, and prices New Zealand out of that market.”
Electric vehicles (EVs), while gaining popularity, present additional hurdles.
Ken says that importing used EVs, such as the Nissan Leaf, is becoming less viable as they compete with brand new models like the BYD, an electric car brand made in China.
Despite some of these challenges, Portage Cars imports around 300 vehicles per month from Japan.
Adjusting to the digital sales
Like many industries, the automotive market has seen a significant shift towards digital platforms. Buyers today have more options at their fingertips and can easily compare prices and models without leaving their homes. This has changed the car-buying process dramatically.
“You used to have localised pricing, and people would drive from Taupo to Auckland to get a cheaper car, but because of online platforms, everyone needs to stay competitive and price aggressively,” Blane says.
The rise of online car listings has made it easier for consumers to find the best deal, reducing the need for long-distance travel and encouraging dealerships to maintain transparency.
The shift to digital marketing has also transformed how dealerships like Portage Cars engage with potential buyers.
“Gone are the days of people opening the Auto Trader magazine, going to six different car yards, and showing what they’ve circled. Now, instead of spending a day, they can just jump online and take a look for half an hour,” Ken says.
This digital transformation has equipped Portage Cars with powerful tools for tracking stock and understanding customer preferences.
“This kind of insight helps dealerships make informed decisions on inventory management,” Ken says.
The dealership can now track what sells fastest and adjust stock accordingly, reducing guesswork and improving efficiency.
The impact of economic shifts
While digital trends and cusomer preferences play a significant role in shaping the car market, economic factors remain a key driver of consumer behaviour. Interest rates, in particular, heavily influence car sales, as customers often rely on financing to make their purchases.
“When interest rates go down, car sales go up,” Blaine says.
He says that during a recession, people hold back from paying big sums in one transaction, so as soon as the interest rates lower and weekly finance options become more affordable, car yards will see an influx of buyers.
Ken is optimistic about the economic outlook for the business, noting the Reserve Bank’s recent decision to lower the official cash rate to 4.75percent in October 2024.
“Even though the Reserve Bank has dropped the official cash rate, people who pay a mortgage will see the benefit of it around March 2025,” Ken explains.
He adds that while New Zealand’s economy has faced challenges, he is hopeful about the future.
“We killed our economy, but comparing to the US, we may recover quicker.”
Economic downturns also lead to noticeable shifts in customer behaviour.
A trend that comes off the back of an economy challenged is people downsizing their cars.
“People are selling their $50,000 car and buying a $25,000 car,” Ken says.
This trend reflects the broader impact of economic uncertainty, with buyers looking to reduce costs associated with petrol, maintenance, and insurance.
Portage Cars has responded to this trend by being open to trade-ins and adjusting its inventory to include more affordable, economical options.
Despite the challenges posed by both global competition and economic uncertainty, Ken remains optimistic about the short-term future.
“The general feel is that there’s a lot more optimism in the marketplace, but there’s certainly a long way to go towards where the heydays were,” Ken says.
