Landrover to reduce access to parts

[sashadidi]

Just talking to the guys at the independent Landrover (unoffical) here in New Zealand, they used to buy their genuine Landrover parts that they needed through a couple of Big places in the UK. Landrover UK has instructed all these dealers only to supply genuine LR parts to inside the EU zone so in theory they cannot supply genuine LR parts to anyone else in the world!!!eg Austalia and New Zealand and elsewhere) This is designed to make sure that the LR franchise dealer ONLY get the genuine parts.this is already showing the effect heer by the Main dealer putting up prices fast. The main dealers here are not interested in older cars and are incapable of fixing them and nobody wants to use them because of their $80 per hour plus gst rate and they are incompentent anyway.
Its ironic that LR brag about 70% of Landrovers still going, they are only still going because these unoffical people and private people do the work and are interested and have the knowledge!! otherwise there would be a lot less on the road
This may affect dealers trying to get parts into Ozzie and NZ although they tried that wilth Fiat here and there was ways around it, but having to pay VAT in the uk adds a lot to the prices charged
Has anyone heard this in Australia?

[slt]

You can order parts from the UK and not get charged VAT. Can't see why this wouldn't apply to independent workshops either. But this might also be a case of having someone go after them for anti-competitive practices if it's true...

I have to say that given my recent experience with Land Rover (Australia) and their dealer "network", anyone asking me for a recommendation about buying a new LR these days will get a qualified "don't" from me ... great vehicles if they work, but don't count on any support from the local distributor! If the above is true, this would only enforce that message...

[Michael2]

If you buy from the UK most sellers will exclude VAT. In fact you will notice that many UK sites advertise their Export price (excluding VAT).

Any time I've ordered from overseas, even for a $5 part, the sellers have always removed the VAT / GST.

A lot of suppliers use A, B, and C quality parts. A (Genuine), B (Often genuine, but without the Land Rover label. For example a brake part used by Land Rover, but with the manufacturers label on it. and C (a cheaper imitation part).

I can't see how the supply of these parts could be affected by LR policy. What's more, being in NZ, you can get some well priced stuff out of Australia, and the GST exemption should just about pay for the cheaper postage.

[ADMIRAL]

When you think about it, the situation is not much different to a multitude of products. The perfume houses went through the same circus recently.

If they have an appointed agent for a product in Australia, any company going to a genuine parts supplier in another country, undermines the local parts network. ( whether we agree with the prices & availability or not )

It won't stop individuals bringing product in, but they are probably trying to discourage commercial quantity importation of genuine product, threatening local franchised dealers.

[sashadidi]

Yes the big parts dealer in the UK (who supplies the genuine parts)and who sells accessories also and name begins with B told them they have been told to to this after april 1st, you can still get someone in the UK to buy them and onward ship, its more costly after no deduction for VAT as sold in the uk and more complicated to ship etc
Its defenitely aimed at those workshops more than small indiviual persons, warped thinking, The main dealer increased a price for a gasket from $14.00 to over $30.00!!! and more examples of this are expected if they think they have the monopoly!!!
I am sure he small dealers will ignore this for small people such as us

[scott oz]

Price fixing is not new and makes a joke of the “fee trade” groups.

Try buying a camera overseas? And getting help locally?

But the worst or is it best!! at this type of practice is the entertainment industry. The creation of “zones” and restricting DVD players to these zones is nothing short of price fixing in my view.

Heard all the arguments about local support and warranty work hence the need to jack up prices in each country etc etc rubbish.

[disco2hse]

Sasha who were you talking to?

You are right about Motorcorp and their parts policy. They only stock parts for late model vehicles. No series specific parts, for example. I have normally had a policy of not buying parts from the local dealerships because of their incredible markup.

So far as GST is concerned, we are stung with GST on imports over about $180. Even though they may leave VAT exclusive there, they do not land tax free here.

This of course would only affect new parts and there are a gazillion Jap imports of, for example, Discos that are being stripped for parts these days. There are a number of used parts on mine already and it is only 6 years old.

Also, while overseas principals may limit who they will sell to here, we have this thing called parallel importing which means that local sellers cannot restrict what comes in to the country and it is not legal for them to establish monopolistic regimes. Sure, local distributors can have sole agency agreements with their principals but they cannot stop others from buying the same goods and from bringing them in too. If local buyers can source their products on the open market at a decent price and import them, then good on them. Pretty sure you will see this happening. All that's needed is a shell company with a English/European address.

Just got off the phone from Forward Specs in Avondale. They've been in business since at least 1991 and Bill there said they were doing this even then. They go through cycles every now and then to make sure their distributors are playing nice. As it is a lot of series parts are third party these days. He did confirm that (Island-nation-west-of-Europe)Parts won't supply him with LR branded parts but there are plenty of other places where they can be obtained, especially the States and Asia.

Alan

[malrv1]

They are certainly putting prices up here. I went to buy an oil light switch the other day $59.00 they used to be about $20.00. I bought an after market one which was identical for $6.99

[disco2hse]

They are certainly putting prices up here. I went to buy an oil light switch the other day $59.00 they used to be about $20.00. I bought an after market one which was identical for $6.99

Kind of my point really. ;)

Alan

[sashadidi]

Sasha who were you talking to?

You are right about Motorcorp and their parts policy. They only stock parts for late model vehicles. No series specific parts, for example. I have normally had a policy of not buying parts from the local dealerships because of their incredible markup.

So far as GST is concerned, we are stung with GST on imports over about $180. Even though they may leave VAT exclusive there, they do not land tax free here.

This of course would only affect new parts and there are a gazillion Jap imports of, for example, Discos that are being stripped for parts these days. There are a number of used parts on mine already and it is only 6 years old.

Also, while overseas principals may limit who they will sell to here, we have this thing called parallel importing which means that local sellers cannot restrict what comes in to the country and it is not legal for them to establish monopolistic regimes. Sure, local distributors can have sole agency agreements with their principals but they cannot stop others from buying the same goods and from bringing them in too. If local buyers can source their products on the open market at a decent price and import them, then good on them. Pretty sure you will see this happening. All that's needed is a shell company with a English/European address.

Just got off the phone from Forward Specs in Avondale. They've been in business since at least 1991 and Bill there said they were doing this even then. They go through cycles every now and then to make sure their distributors are playing nice. As it is a lot of series parts are third party these days. He did confirm that (Island-nation-west-of-Europe)Parts won't supply him with LR branded parts but there are plenty of other places where they can be obtained, especially the States and Asia.

Alan

yes thats the point I think, they can easily can get the big supplier( who gave discounts for bulk) to supply to a name in the uk who then sends it on but they cannot get the 17.5% VAT back under this sytem which increases their costs and eventually our) a lot!!!, yes parallel imports are allowed but this appears to be a UK landrover edict in that they are "protecting" motorcorp distributors and all their mainly useless main dealers who do not have a clue about older vechiles and do not want to know at all , I think the Uk is still better pricewise overall at present because of the better exchange rate and full range of parts. My genuine Puma engine air filter Nz$110.00 plus gst (main dealer)from other guy $65.00 etc etc
Just interesting how they think, they are going to put people off LR not encourage them as a brand for the future with this type of behaviour but then most car firm accountants only see today not long term!! Shell companies are not easy to get under Uk paperwork and you need to know someone who will act as a agent and them you have to pay them as well!! more costs in the chain
again the small punter get screwed again

[mox]

I doubt Land Rover Australia is innovative enough to have local spare parts purchasing officers. Some suppliers of machinery made overseas do, and sometimes they can and do source some spare parts locally that meet their specifications for genuine parts.

Undoubtedly some genuine spare parts are outrageously priced because the distributer thinks there is no significantly cheaper alternative. On the other hand, costs of parts could sometimes vary considerably depending on manufacturing processes and size of production runs. There may also be a large variation in number and cost of distribution and handling steps, each of which adds to the final price.

The then Spare Parts Manager of Massey Ferguson Australia gave a talk on spare parts at a Grain Harvesting Contractors meeting I attended some years ago. One comment I recall he made was to the effect that "If you come cross a part that you think is outrageously priced, please let us know." Sometimes a purchasing officer investigating it could find it is a part could be restocked from a supplier down the road for a fraction of the cost of one from the other side`of the world through several stages.

Note that if you buy more than one "genuine" part with the same part number, especially at different times and places, they may be effectively the same regarding function but obviously made by a different manufacturer. Conversely, some that do the same job but are different to fit different makes of machine but made in similar general styles are from the same maker.

[disco2hse]

Oh, the other thing. You do realise that LR don't actually make a lot of the components included in the vehicle huh. What to stop you from getting a Ford Transit air filter, for example? Are they that different? Who actually makes them?

[sashadidi]

Oh, the other thing. You do realise that LR don't actually make a lot of the components included in the vehicle huh. What to stop you from getting a Ford Transit air filter, for example? Are they that different? Who actually makes them?
yes it unfortunately under warranty though, we had a guy hre who needed his puma for Xmas holidays and the dreaded vacum pump blew, sorry none in NZ waht about my holidays,sorry was the reply, down to Ford brought on, put it on and off on holidays , near end of january, LR dealer we have one,The guy said its fixed, how was the reply?, oh no they said you must change it for the LR one for warranty!!!, even though its the same part, after a bit of talking and looking they accepted it and he has a spare pump!!! but again no service or parts and about $200 dearer as well!!! those lovely useless LR dealers

[disco2hse]

yes it unfortunately under warranty though, we had a guy hre who needed his puma for Xmas holidays and the dreaded vacum pump blew, sorry none in NZ waht about my holidays,sorry was the reply, down to Ford brought on, put it on and off on holidays , near end of january, LR dealer we have one,The guy said its fixed, how was the reply?, oh no they said you must change it for the LR one for warranty!!!, even though its the same part, after a bit of talking and looking they accepted it and he has a spare pump!!! but again no service or parts and about $200 dearer as well!!! those lovely useless LR dealers

Mine is only three years out of warranty. I know the frustrations well. But, shouldn't the pump have been covered by the warranty if it failed??

Guess that's the problem when you are buying into the luxury car market. I am sure it is no different for Jag and Aston Martin owners. And, are LR pricing themselves out of the market? They already have for most.