Buying motor vehicles

Learn about the All of Government (AoG) motor vehicles contract, through which schools can purchase passenger vehicles and light commercial vehicles, such as minibuses and vans.

Level of compliance Main audience Other

Recommended

  • Principals and Tumuaki
  • Staff responsible for buying on behalf of their school
  • Boards

AoG contracts are optional for schools to join. If not joining the AoG contract and buying from the public market instead, it is still recommended that schools consider the advice on this page.

Benefits of joining this AoG contract

Joining an All of Government contract is likely to save a school both time and money, while also reducing risk.

Learn more about All of Government contracts.

The AoG motor vehicles contract offers the following benefits to schools.

  • Schools are projected to save 7% or more (depending on the vehicle selected) when buying vehicles through this AoG contract, compared to the best prices available through the public market.
  • Schools can select the vehicle that best suits their needs from a catalogue of options, including standard passenger vehicles, minibuses and vans.
  • Vehicles in the catalogue have been chosen based on their estimated Total Cost of Ownership (TCO) over a 5 year/100,000km period.
  • Passenger vehicles in the catalogue meet a minimum 5 star ANCAP (or equivalent) safety rating, while the minibuses and vans meet a minimum 4 star rating.
  • All vehicle 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).

How to join the AoG vehicle contract

The process for joining the AoG rental vehicles contract is similar to that for other AoG contracts.

Step Action
1

Before you begin

 

If your school hasn’t signed up to an AoG contract before, you will need to complete a non-disclosure agreement (NDA) available on the New Zealand Government Procurement website(external link).



Learn more about NDAs.



You can contact school.buying@education.govt.nz to find out if your school has already completed an NDA.

 

2

Read about the contract and the memorandum of understanding (MoU)

 

Log in to the New Zealand Government Procurement website(external link) to access more information on the contract. You will need to be using your school-linked RealMe account, as you will gain access to commercially sensitive information.

 

Learn more about linking a RealMe account to a school.

 

Read the MoU for the motor vehicles contract in the ‘Contract documents’ section on the New Zealand Government Procurement webpage(external link). The MoU sets out the obligations of the schools participating in the contract.

 

Learn more about MoU.

 

3

Complete a Letter of Accession (LoA)

 

Request a Letter of Accession for the contract by emailing procurement@mbie.govt.nz.

 

Learn more about a LoA.

 

Completing the LoA confirms your school agrees to the terms set out in the Memorandum of Understanding (MoU).

 

Your completed LoA must then be emailed to procurement@mbie.govt.nz.

 

Once the LoA is processed, you will receive a confirmation email.

 

You can now begin engaging with suppliers. Supplier contact details can also be found on the NZGP page (when logged in with a school-linked RealMe account).

 

Motor vehicle suppliers | New Zealand Government Procurement and Property(external link)

 

4

Determine your requirements

 

Consider how your school will be using the vehicle(s).

  • How many people will want to use the vehicle(s) on any one trip? Will it often be smaller groups in the vehicle(s), or larger, such as sports teams?
  • How much storage space will be required in the vehicle(s)?
  • What sort of vehicle will the users in your school be comfortable driving?
  • Who, as a passenger, will the vehicle(s) need to be easily accessible for?
  • How long will the trips made in the vehicle(s) last?
  • Will the trips made be on open roads, or busy urban areas?

 

5

Review the vehicles catalogue and select your vehicle(s)

 

Research the vehicles listed in the AoG catalogue and assess if they meet your requirements. If you are interested in a vehicle which is not on the catalogue, you can contact the supplier directly to request pricing and access to the AoG contract discounts.

 

Access the catalogue through the link below (when using a school-linked RealMe login).

 

Using the motor vehicles contract | New Zealand Government Procurement and Property(external link)

 

Prepare a vehicle shortlist and note information including:

  • vehicle details
  • passenger capacity
  • safety rating
  • immediate purchase price
  • Total Cost of Ownership (TCO)
  • cost of insurance
  • standard warranty and details of extension option
  • the dealer’s network and customer service
  • an estimation of any repair costs.

 

This is a good time to evaluate the vehicles that you have shortlisted in person.

 

6

Place an order with your chosen supplier

 

Select your vehicle(s) and place an order using the purchase order template available in the ‘Contract resources’ section on the NZGP website (when using a school-linked RealMe login).

 

Using the motor vehicles contract | New Zealand Government Procurement and Property(external link)

 

Send this order directly to your chosen supplier using the information below, rather than to a local dealer.

 

Motor vehicle suppliers | New Zealand Government Procurement and Property(external link)

 

7

Collect your vehicle(s) from your local dealer

 

Your vehicle(s) will be delivered to your local dealer, who is then linked to the vehicle(s) for ongoing servicing and maintenance.

 

The dealer will complete pre-delivery servicing, which includes an initial WOF, warranty check and groom.

 

You can now drive away with your school’s new vehicle(s).

 

Key vehicle considerations

Total Cost of Ownership (TCO)

While a vehicle’s immediate purchase price is important, buying staff should be sure to take into account a vehicle’s Total Cost of Ownership (TCO). This figure is included in the AoG catalogue beside each vehicle.

The TCO is an estimation of a vehicle’s whole-of-life costs (over a five year/100,000km period) including:

  • immediate purchase price
  • registration fee
  • fuel costs
  • WOF
  • scheduled servicing and maintenance (excluding parts)
  • tyre replacement
  • residual value (subtracted from the TCO).

The TCO does not include costs such as unscheduled servicing, replacement parts, accessories or insurance.

Warranty

Although vehicles in the catalogue have a three-year/100,000km warranty, this warranty can be extended.

Schools should consider extending their warranty as it may be worth paying the immediate extra cost, instead of facing an expensive repair bill in the future.

Service plans

Schools can choose to buy a service plan with their vehicle.

Service plans differ across suppliers and vehicles. However, they always include the cost of labour for a scheduled service and never include the cost of any parts required or unscheduled repair work.

Maintenance

Vehicles should be maintained by the supplier’s service centre, such as at the local dealer where the vehicle was picked up from (if possible).

This should be done at the intervals listed in the vehicle’s catalogue.

Having maintenance completed by the supplier’s service centre ensures that the vehicle is in good condition.

It is important that the supplier’s service centre is the business that completes the work. Under a vehicle’s warranty, the supplier has no responsibility over any problems that arise as the result of work done on the vehicle by someone other than the supplier.

If a school is leasing vehicles

Schools choosing to lease a vehicle rather than purchase it outright can also benefit from this AoG contract.

Lease providers are able to access AoG motor vehicle pricing on behalf of a school (if they first sign a non-disclosure agreement).

A lease provider will then pass on the cost of the vehicle, plus any services, to the school through their lease agreement.

  • Schools must join the AoG contract before their lease provider purchases a vehicle through the AoG motor vehicles contract on their behalf.
  • Lease providers must first sign a non-disclosure agreement which can be requested from  vehicles.coe@mbie.govt.nz (most of the main lease providers have already signed an NDA).
  • A completed NDA must be emailed to the AoG motor vehicles team. Once approved, the AoG motor vehicles team will send a confirmation email to the school and their lease provider. 

Note that because the commercial terms of a lease agreement are between a school and a lease provider, the AoG motor vehicles team does not provide commercial advice on lease agreements.

 

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