Automobile prices in New Zealand dropped by more than 3% between April and June, partly caused by the strong local currency. The decline represented the largest quarterly decrease in nearly two decades.
On the other hand, prices of imported second-hand cars rose by 4.4% as the local currency dropped against the Japanese yen. This caused the number of vehicle registrations to fall in the June quarter.
While prices for new cars have dropped, it can be a daunting experience mostly if your budget still doesn’t fit the bill, so it’s best to consider among pre-owned vehicles as an alternative option.
Fast and the Furious
The drop in new Kiwi car prices during the second quarter of 2016 revealed a trend; lower prices abroad driven by weaker demand from international markets, according to an analysis by Infometrics New Zealand.
Lower prices, however, naturally mean more sales with the number of first-time new vehicle registrations rising over 5.4% compared to the same quarter in 2015. In addition, registrations for used cars are on the opposite trend because of the New Zealand dollar-Japanese yen forex.
In neighbouring countries such as Australia, consumer spending activity on cars point to a different trend this year.
VFACTS sales data revealed that Australians have bought more imported vehicles from Germany than local cars so far in 2016.
A total of 51,376 cars changed possession compared with 47,608 vehicles. Sales of German cars in the country have not outpaced locally made cars yet, so this year will be the first time if the current trend continues for the remaining months.
These vehicles are considered prestige brands such as a BMW or a Porsche and it’s interesting that Australians have this kind of love affair with German cars, although that is entirely another story.