The two men then fought before the gunman left in his car.
A passenger in the shot man's car drove the man to Rotorua Hospital for treatment. He has been treated and discharged.
Mr Loper said the injuries could have easily been a lot worse.
"He was very, very lucky," Mr Loper said.
He said the shooting came completely out of the blue for the man who was simply driving through central Rotorua minding his own business.
Mr Loper said the man was this morning still in shock.
"I don't think this whole thing has completely sunk in with him yet."
Mr Loper said the shot man was lucky to be alive.
"It appears this has happened because one of the vehicles went slower than the other It would appear he (the victim) was following the vehicle too close according to the offender."
Rotorua police detectives have spent the entire night making inquiries in the area to find witnesses and examine the scene.
"We are looking for that white station wagon and would to speak to anyone who might have been in that area who may have seen or heard anything that was out of the ordinary."
Steve Cornelius who works next to the scene said it didn't surprise him to here what had happened.
"There are a lot of scumbags around here and when I saw the cordon I thought it was either a rape, murder or someone had been beaten up."
Police had posted a guard and sealed off the scene blocking of part of the road outside the Jade factory on Eruera St.
* If you can help find the shooter, contact police immediately on (07) 348 0099, (0800) TIPOFF or 111 if its an emergency.
- Additional reporting Greg Taipari, Anita Moran
- ROTRUA DAILY POST