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Motor vehicles

Part of: Vehicles

The All-of-Government motor vehicles contract provides fit-for-purpose, safe vehicles, including electric vehicles, at the lowest possible total cost of ownership across the life of the vehicle.

Key details

Status

Current View dates

Type

All-of-Government

Latest news

Takata airbags recall

A compulsory recall is in place in New Zealand after a global recall of vehicles fitted with Alpha type Takata airbags. We are working with our vehicle panel providers, and those providers affected by the recall will be in contact with agencies that have affected vehicles. More information can be found on the Product Recalls website or please contact us if you any questions.

Product Recalls website

Contact us

What's covered

The Motor vehicles contract covers passenger and light commercial vehicles split into 14 vehicle sub-classes and two restricted specialised sub-classes, covering a range of vehicle body style, transmission and fuel options to meet fit for purpose requirements.

PassengerLight commercialSpecialised
Sub-compact 2WD Utility Limousine
Compact 4WD Utility or Wagon Police Prime 1
Medium 4WD Large  
Large Cargo Van - Small  
AWD/SUV - Medium Cargo Van - Medium  
AWD/SUV - Large Cargo Van - Large  
  Minibus - Medium  
  Minibus - Large  

The contract includes the Electric vehicles supplier panel which is an open panel, meaning car manufacturers can apply to join when they have new, or near new, electric vehicles available to supply the New Zealand market. 

What's not covered

  • Fleet management services
  • Leasing services and financing arrangements
  • Rental vehicles
  • Specialised modification and fit-out requiring engineering services
  • Services related to the disposal of vehicles (except as a potential value-add from suppliers of vehicles)
  • Staff personal purchases 

How it works

You can purchase vehicles best suited to your needs from any or all suppliers on the panel. The vehicles available through this contract are listed in the vehicles catalogue.

Vehicles in the vehicles catalogue are ranked according to their Total Cost of Ownership (TCO). A vehicle's TCO looks at value for money across its whole-of-life costs.

Key elements of the TCO model are:

  • purchase price
  • registration, re-licencing and RUC (if applicable)
  • fuel costs
  • WOF
  • scheduled servicing and maintenance (excluding consumables)
  • tyre replacement
  • residual value

The TCO model does not include unscheduled servicing, accessories, replacement panel parts, servicing parts, depreciation, insurance or Fringe Benefit Tax.

Features and benefits

It is a simple and flexible solution that reduces the complexity and cost of procurement for agencies and suppliers, while providing continuous improvement in technology, service delivery, cost-effectiveness and performance.

All suppliers offer:

  • a warranty of at least three years/100,000km as standard
  • a minimum four years/100,000km extended warranty as an option
  • service plan options of 80,000km and 100,000km
  • roadside service for mechanical breakdowns during the warranty period (including any extended warranty period)

The contract also provides the option to buy some related services such as service plans, light fit-outs etc.

Vehicles on the catalogue have been selected based on the best TCO over a 5 year/100,000km ownership period.

Passenger vehicles meet a minimum 5 star ANCAP (or equivalent) safety rating. For the light commercial vehicles the minimum safety rating is 4 stars, although 54% of on catalogue light commercial vehicles now meet the maximum 5 star rating.

If your fleet ownership model is to lease your vehicles, you can still benefit from this contract. While leasing services are out of scope, your contracted/preferred leasing provider can purchase vehicles at AoG rates on your behalf and you benefit through better monthly leasing costs. 

Savings and costs

Savings

Agencies who participate in the Motor vehicles contract don't need to go through a full procurement process of their own, which saves time, effort and cost.

The TCO for each vehicle is subject to a number of moving elements and as such we can’t accurately forecast savings based on the TCO. Reported savings is therefore calculated using the purchase price of the base vehicle (excluding On Road Costs (ORC) and accessories).

We have projected an average 7% savings (net of the administration fee) on the baseline market rate (the best rate available to agencies outside of AoG).

Agencies can further reduce their fleet costs by using the information and guidance provided to make informed, cost effective purchasing decisions.

Costs

Most AoG contracts include an administration fee. This fee is a simple, effective and transparent way of recovering the cost of developing, sourcing, implementing and managing AoG contracts.

An administration fee of 1.5% applies to the base vehicle cost (excludes ORC and accessories) and is detailed in a separate line within the vehicles catalogue for each vehicle.

Suppliers collect the administration fee and pass it on to MBIE - agencies don't need to make any payments to MBIE. 

Dates and renewal details

Status:
Current
Start date:
Current term end date:
Renewal details:
One right of renewal of five years
Expiry details:
If the right of renewal is exercised, the contract will expire on 30 June 2025

Joining AoG contracts

To be able to purchase from this contract agencies and schools first need to join.

​​Roles and responsibilities

Each participant in this contract has responsibilities that they must meet as part of that contract.

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