Government set to replace 3 year old BMW 7 series limousines with new models at NZ$200,000 each. Your view?

Selling them after 3 years seems crazy to me. These things last for much longer.

I bought my 1994 Toyota Windom in 2004 and it's still going strong. Cost me NZ$7,000 and hasn't skipped a beat since.

Now over 160,000ks.

Happy to sell it to Bill English for a tad under NZ$100,000....

Cheaper than these bloody Beamers...

Still can't quite believe they think they can get away with this just weeks after warning about fiscal crisis and the need to sells state assets.

Keep the current Beamers for another 3 years I say...

cheers

Bernard

Fleet of new BMW's is frankly chump change for Govt. But it's the principle and look that is woeful after "belt tightening" mantra.

Re-reading of Animal Farm makes even more sense these days.

I hope someone can drag out all the quotes from the then opposition from 3 years ago about the previous Lab Govt buying the BMWs back then.

Why not lease them?

How many miles do they clock up?

Possibly something that defines the current government's connection to the electorate. But maybe not - I would first ask each of the other political parties - on the record - if they would have done anything differently.

Leasing is a mugs game and we have the world cup and the countries image to worry about around the corner.

I hope they go for the lowered model with cut shocks, a mad stereo system and fluorescent lights under doors.

Personally, I'd like too see more politicians on Public Transport...

or even better... Steven Joyce on a Skateboard?

Perhaps, they would become more a-tuned to the view of their constituancy...

Leadership by example seems a foreign concept to the national govt.

3 years is a joke, don't you buy expensive cars like this because they last?



Why can't they go back to the Holdens Statesmans and Ford Fairlanes etc? nothing at wrong with them, and cost about a quarter of the price.



I know something's wrong when I'm agreeing with Metiria Turei.

CR1

• Make: BMW
• Model: 730LD
• Year: 2008
• Submodel: SEDAN 6A 4DR 3.0L
• Main colour: Silver
• Vehicle type: Passenger Car/Van
• Body style: Saloon
• No of seats: 5
• CC rating: 2,993cc
• Fuel type: Diesel
• Power: 170kW
• Transmission: 6-gear automatic
• Assembly type: Imported Built-Up
• Country of origin: Germany
• Gross vehicle mass: 2,440kg
• Tare weight: 1,940
• Axle type: 2-Axle
• No of axles: 2

• VIN: WBAHM42030DG69688
• Plate: CR1
• Plate type: Crown
• Engine no: 24536839

• Latest odometer reading: 29,664 Km (on 2011, January 5th, source: COF Inspection)
• Estimated current odometer reading: 30,657 Km
• Latest usage: 23.66 Km/day (8,611 Km/year)
• Estimated fuel cost: $2.31/day, $16/week, $70/month, $839/year 

So about 10k a year. Would be in MINT condition.

This vehicle hardly used.

Keep the "old" ones I mean??? Come on! Or sell them and buy cheaper cars. Toyota Corona, no worries, a great machine to get you from A-B.

Key is an investment banker after all - You simply can not be serious having a three year old car.

Rolls Royce or a Maybach?

When does Key introduce MP Bonus'?

Key should also get a Eurocopter - its simply undignified to use Air NZ. Maybe South Canterbury have a couple going cheap?

Key is full of hot air. Talking austerity one week, fleet of new beamers the next. I see 6000 people turned up to an Aussie job fair at the weekend. Would you blame them? Why pay tax in a country that's sinking faster than the titanic, Key & his austerity talk is nothing but re-arranging deckchairs on the Titanic. I wish Key happiness with his fleet of beamers, his legion of beneficiaries & his following of property investors. All that will be left is a hollowed out shell of a once proud & beautiful nation.  

Most mechanical warranties exclude the BMW 7 series. That says a lot about it's reliability (or lack of). 

As a former used car dealer, all I can say is that this is just plain dumb and wasteful behaviour. Everyone knows that the depreciation curve in the first three years is very steep. Particularly with luxury vehicles. My guess is that if they paid $200k three years ago they're now worth significantly less than half that value now. Would have been more efficient and easier to simply burn the cash wasted ($4m?) 

If they're serious about being fiscally responsible, they're better to either lease cars, hold onto them for a few more years, or buy less luxurious vehicles. Yes, the cars need to be smart, but they don't have to be new or the latest model. 

And the argument that they have to be top of the line because of foreign dignatories is absurd and all about image. But to compromise, why not have two or three latest models for such occasions and let the NZ ministers travel in the not-so-new ones?

The lack of financial savvy being displayed does not inspire confidence in taxpayers that the country's money is being well looked after. 

Notice how Mr Goof is very quiet on this subject - it was Labour who signed the deal with BMW. 

By the way, Statement or the Fairlane aren't available anymore so the govt might have to go to HSV Senator in 2014..  Nice car, showing who's the boss.  Failing that i think they should get Great Wall as part of the FTA with China.

Morning Report this morning, failed to ask the 'build energy / build carbon question.

As with ALL financial commentators, they don't understand the physical world.

It takes almost 300,000km to have an injected vehicle overtake it's build energy, compared to continuing to use a naturally-aspirated model - all else (cc, weight) being equal.

For an injected to overtake an injected - doesn't happen. You're better running it into the ground - 500,000 km, garaged and pampered, is not unrealistic; even if that includes one engine recondition.

By which time, Ministerial cars will be the least of our worries:

http://www.peakoil.net/uhdsg/

natioinal have got to stop blaming previous government BS that keeps coming out and start to do something. John Key is really starting to irk a lot of people saying one thing and then doing complete opposite (I voted for him last election) but these cars are hardly used..come on ...except for the one Brownlee used..shocks have gone. Maybe they could give them to the Work and Income and they could lend them to those who have had there car impounded instead of forking out interest free loans.

Could they not just take the wings of the Sky Hawks and use those instead...

Why are they slumming it, why don't they get Ferrari's?

BMW?: Rule No. 1. Get rid of it before the warranty period is up! Everyone I've had 'went' just after the 3 year warranty period. Then, they get really expensive......

A pity they can not disclose just how good a deal they are actually getting.. or not.. The financial justification if any would be interesting to see. An option could have been to just update a few of them for the more important individuals...

Well atleast the foreign nationals will get plenty of use of them during the World Cup and run up a few KM's.

In terms of "image" - I agree - these are so "yesterday".

Should have gone for a mix of Lexus and Toyota hybrids - imagine the positive public reaction - don't these guys have any decent strategists working for them?

Go for Great Wall, because:

1. Made in china - Will satisfy the FTA agreement

2. Keep chinese labour force going so that they can buy our stuffs (they may use child labour - who knows!)

3. Big enough to carry Gerry in great comfort

4. Great Wall X240 is a recycled Toyota Surf so it will have a green image of being recycleable.

5. Cheap and nasty (same as our politicians)

The cost is probably about $2 or $3 per taxpayer every 3 years, or $1 a year - hardly worth worrying about

As a lefty lunatic lettuce, I'm an outraged at this monstrous waste. And I blame John Key for it and I have no doubt that he raced down to BMW and wrote out the check himself. That is how quickly he wanted to get his rapidly spreading arse into a new car, with our money!

This is totally uncalled for. In this day of environmental concerns, global warming, peak oil, they should all be on bikes. And Gummy is right when it comes to State occasions and welcoming Heads of State and other Prime Ministers. Yesterday he should have bowled up at the airport to pick up Gillard on a tractor. It would have been quite simple to lean over, give her a look and say, G'day mate. Jump on; I'm your a lift into town.

Thats all very well JJ....but having have made cuts to adult education/night classes in rural areas  and most unkind of all,  axing the service of specialised teachers for deaf children 

this sort of self entitlement isn't a good look.

i

Same old problem, public servants want to be big shots.

I pay my taxes and spend my money how I want, if I want fast cars and loose women, then so be it, I earned it, I spend it.

Politicians want what I may have, but want someone else to foot the bill where it starts to go wrong..

Usually a fleet of these sorts is seen in corrupt countries and/or dictatorships.

I have no problem with government officials having nice cars for official engagements, but a fleet of 7 series beamers is OTT.

But on the other hand where can I buy one of these low mileage well serviced beauties. One persons folly is a another persons gain.

.

Why not cars like Celia shows here?

http://www.stuff.co.nz/national/politics/4662008/Australian-PM-Julia-Gi…

Mind you. Some slightly heavier folk may not be able to fit into them.

Cheerio,

Miss Astrid

the politics of envy are in fine fettle and form here today !

Just remember people, it's not our money, it's theirs!  Or should that be the other way around?

I wonder if  the current fleet will be sold in the next few months.

If it does gets sold before the election then I would be interested to know the sale process and if the general public are allowed to buy them.  

These cars would be a bargain if sold at its DEPRECIATED value. 

I drive a late model Falcon...does everything all the Euro-trash cars can do....except i find the scratches it leaves on my arm when it flys off to chase mice are a bit disconcerting but otherwise it's a good Falcon...10.7 litres per 100 k's too!

Government set to replace 3 year old BMW 7 series limousines with new models at NZ$200,000 each x 34.

 The only answer: Sack the Prime Minister including the ones (Ministers) behind that and other irresponsible decisions.

This is a clear indication that our parliamentarians in power still don’t know what’s hitting us economically, fiancially and socially as a nation in the next few years.

Too many actions/ inactions are fundamentally wrong in this country - leading to prohibitively costs and suffering - wake up younger generation – start the revolution – before “NZwars” take over.

This is really bad reporting.

There is no mentioning that the government was stuck with a contract signed by the Labour.

Also using market price to suggest that's the cost to government, and not the undisclosed (heavily) discounted prices.

Maybe if they instead bought 'smart cars' then some of that "smart" might even rub off! ;-)

Can we please have the 'massage seating' replaced with something similar to Tasers?

I don't know if anyone else remembers  a very similar argument in the early 90's when at the time Bolger was saying things like "it's  time for all NZder's to tighten their belts". While at the same time splashing out nearly 100thou each on luxury vehicles for those gravy trainers.

How times have changed, NOT

BMW is a good car, but they could have done better

So what should they have that is iconic nz - king cab Hilux .....Baaarrrrrrryyyy!

At the time the government bought the current fleet of BMWs I'm sure I read somewhere they paid $90k for each car. They'll probably recoup that when they sell them. The $200k retail figure is meaningless. Do you think rental car companies pay retail for a new fleet of Toyotas? Hell no. The car manufacturers battle each other out to win these major fleet deals.

This is typical of small town NZ at play - the newspapers do a great job of stirring it up. Govt should have good, tidy cars and they should be replaced every 3 years. What kind of international image do you want to portray - Banana Republic? In fact thats not right because the first thing any self respecting dictator does is buy a big black Merc! Tinted windows of course.

The PM should have hisown plane too- Airforce one which would actually put his time to better use - thats why Peter Jackson has one. But imagine the press if the PM had a Lear jet!

Can you imagine Bernard and the regulars on here if John Key did have a jet.....lol

Hey sore-loser

Or should that be SORE-loser,  or sore-LOSER

Learn how (not) to use your Caps key. USING CAPITAL LETTERS IS SHOUTING.

And your contributions are not worth shouting about.

As for the cars,  who cares?  They're just cars for Goodness sake,  and of course I would expect our politicians to project the image of a successful country.  No good turning up to a school visit in the family Falcon.  The kids would never vote for you.  Mind you,  teachers don't vote National anyway.

I owned a BMW 525 and it was junk.  Noisy,  heavy,  lumbering and cost a fortune to maintain.  Don't ever let them get out of warranty.

Imagine that you invite a guest to a family dinner. A modest but adequate dinner with some home grown vege's and a fresh apple crumble in the stove. Money's tight but everyone contributed something in effort and food.....there's enough and the people make the occasion. Kids laughing and Granddad with the newest grandchild.

The hypothetical guest arrives in their new BMW beeping his horn and parks across the driveway in front of the old ute and the family station wagon. In their pin stripe suit and portulent belly the BMW owner take the seat at the head of the table and talks about themselves and how wonderful their life is. They then take a 1/3rd of all the food in front of them and proceed to stick their nose in every plate and dish and taking nibbles here and there. Finally after eating nearly everything else at the table they take 'their' 1/3 leaving some crackers and brussel sprouts...declaring it a generous gift for the family (no, no don't thank me!). Being a polite and humble family they are shocked and humiliated but know they aren't capable of defending themselves. They let them leave but they resent the look of a BMW every time they see one and all it stands for.

Our politians no doubt consider that they're deserving of a little treat after a hard year of 'doing stuff': Making decisions, making statements, thinking about important $hit.......hmmm the mahogany trim and cream leather perhaps? But it's behaviour that clearly runs against the grain of not only the current economic reality but also deeply emmedded cultural values......except perhaps for narcissistic parasites that would like to convey a false prestige at the expensive of others or they just don't get it.

These people are takers not makers.

In fairness, there is probably a pretty good case for the invoking of the roll-over clause. You’ve got to remember that this was done by a DIA bean-counter, without political input, so the financial equation probably made sense.

Buying a vehicle for three years, then selling it, is pretty similar to leasing, except there is a larger capital outlay for those three years, which is why most corporations use lease companies. Indeed, a lot of government departments use lease companies because it’s good accountancy.

From the figures quoted for the vehicles (and these are probably off-the-record fairly accurate estimations), the government is probably getting these at close to cost price. BMW may not be making much profit on these vehicles from the sale, especially if they’re a run-out; profit would come from servicing the vehicles through-out their life (BMW make the parts, so it’s a captive market).

In this case, BMW will service the vehicles and then sell them to the public over the next few months. In fact, the ‘cost’ of leasing is paid for by private buyers since mass selling of ex-fleet vehicles results in faster depreciation of non-fleet vehicles, since three years down the track their value is measured against ex-fleet.

If you as a private individual paid $190k in 2007 for a BMW 7 series, and you want to sell it, you’ll probably want about $100k for it. But if the Government paid something like $100k for it NEW in 2007, you’ll see that based on the resale value they’re getting a pretty good deal. It’s the schmuck who paid full price in 2007 and is looking to sell their vehicle in a few months when the government vehicles flood the market that will be cursing.      

Tsk tsk. It does look bad doesn't it? Makes them look like a bunch of spoiled kids.

Clive Matthew-Wilson, editor of the car buyers' Dog & Lemon Guide, said the cars were likely to fetch $55,000 to $65,000 each at auction now or up to 30 per cent more than that if sold via a dealer. "

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10706832

Perhaps one of you Beanies could crank the numbers, compare, see how adrift things are.

"Might be a quid to be made 'ere, Terrance my son."

I think the drivers wanted to impress their girl friends and ordered the new cars without telling the ministers