New car sales in New Zealand have increased 10 per cent between January and September 2017, driven by a favourable market environment, according to the Motor Industry Association (MIA).
MIA CEO David Crawford said that a growing migrant population and a strong currency have led to increasing competition between suppliers and distributors. A low interest for financing and high consumer confidence in the economy has also prompted more Kiwis to buy cars.
The automotive industry sold 118,256 units in 2016, yet sales so far in the first nine months of 2017 indicate another record year for the fourth consecutive time. On the other hand, Motor Trade Finance said that used vehicles are also on the rise. The group recorded a 5.9 per cent increase in new and second-hand vehicle sales during the first quarter of 2017.
A “slight shift in vehicle type preferences” also occurs within the market, as consumers gravitate towards buying small- and medium-size SUVs, according to Crawford. For car buyers, the ongoing competition prompted dealers like K.D. Auto Spares to offer the best possible price for equipment and accessories as well, ranging from Nissan Maxima car parts to Toyota engines.
While buying a car may be cheaper now, the New Zealand Automobile Association (NZAA) said that the cost of ownership might amount to more than your estimates. Fixed and flexible costs comprise two of the major factors that determine the overall expenses required to own and operate a car.
For instance, a small petrol and diesel car would require you to spend a fixed yearly cost of $4,500. This amount includes fixed costs such as licensing and insurance. Flexible costs include fuel expenses, tyres and maintenance.
Competitive prices may convince you to buy a new car, but you should consider the long-term expenses to see if you are saving money on a low-priced vehicle.