According to the Motor Industry Association, new car sales in New Zealand increased by almost 15% in the first four months of 2002, compared with the same period last year, writes Dave Moore.
“April sales, at 4,735, were up 29% on April 2001 – in fact it was the strongest April for new car sales since 1996, and the second strongest in the last 12 years,” said Motor Industry Association CEO Perry Kerr.
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“This brought the total for the first four months of 2002 to 19,452, 14.9% up on the same period in 2001.”
The year to date result is almost the reverse of what is happening in the world’s major car markets. The USA, Latin America and many European countries have all experienced significant downturns this year.
“We are at last starting to see the benefits of the abolition of import duty on new cars which took place in 1998,” Kerr said.
“Now that we have had tariff-free new cars for four years, those cars are now finding their way into the used car market, where they are very cost-effective against imported used cars. We are seeing a return of private buyers to the new car market, because the threat of excessive depreciation is no longer the barrier that it was. Those who correctly treat car ownership as an expense rather than an asset are finding that new car ownership is now surprisingly affordable.”
Used imports also shared in the buoyancy, helped by the biggest April in history, with 11,042 registrations.
“This result somewhat flew in the face of importers’ allegations that having to meet the new frontal impact standards which applied from April 1 would put them out of business,” said Kerr.
Used import passenger car sales for the first four months reached a new January-April record of 46,309, 14.7% up on the previous record of 40,360, set in 1999.
