Strong dollar drives up car sales

A strong Kiwi dollar has seen motorists driving away imported Japanese cars at bargain prices - and one Tauranga car salesman predicts the trend to continue.

Figures show the New Zealand dollar is now buying about 15 per cent more against the Japanese yen compared with this time last year, and about 30 per cent more compared to two years ago.


Bryce Campbell Car Sales owner Bryce Campbell says sales have been strong in recent months. Photo: Bruce Barnard.

And the favourable exchange rate in recent months has led to a near record number of used Japanese cars now available in NZ.

At the moment it is estimated that around 19,000 cars are for sale nationally, with the volume of vehicles putting further downward pressure on prices.

Bryce Campbell Cars owner Bryce Campbell says car salesmen have been reaping the rewards of an 'exceptional” exchange rate for a number of months now, with interest and sales soaring.

And he isn't expecting it to slow down anytime soon.

Bryce says: 'It's the strongest year for many years, and I'm sure that will continue as long as we have a good economy here - which all signs are pointing to - and the exchange rate remains where it is.

'We have had an exceptional New Zealand dollar and Japanese Yen exchange rate in our favour for a while now.

'As a result, the cars that we are importing are coming through at better prices than ever, so the consumers are the winners.”

National figures released by the Motor Industry Association back this up, with 127,179 new vehicles registered in 2014 - more than for any previous year and up 12 per cent (14,062) on 2013.

Commercial vehicle sales also hit a record, with 36,662 vehicles sold, easing past the previous record set in 2013 by 19 per cent.

However, the 90,517 new passenger car registrations was short of the record of 97,346 set in 1973.

According to Priority One's latest figures in the Western BOP there, were 878 cars registered during last October.

This was an increase from the 865 cars registered in September 2014 and also greater than the 657 cars registered in October 2013.

The annual average growth rate in the number of cars registered in the sub-region was 23.2 per cent for the year ended October 2014.

Bryce, in reference to his car yard, says all major brands are seeing an upturn in interest, with sales strong.

He says: 'People are confident about their employment, people are more confident about the economy and people can see the value for money in cars.

'Unfortunately, the exchange rate may not stay there forever so we may look back at this period and say it was a good time. Right now all the indicators are that it's a great time to get out and buy a car.”

Car owners and buyers are also enjoying falling petrol prices, the lowest since 2010, to go with cheaper imports.

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12 comments

Used & Used

Posted on 19-01-2015 13:29 | By Disappointed

Why is it that imported Japanese used vehicles for sale in Tauranga are, like for like, consistently some of the most expensive in the country? Buyers who do a bit of research and are prepared to travel outside the BOP can save thousands.


It won't last forever!

Posted on 19-01-2015 13:47 | By monty1212

The trouble is is that although the ridiculously overvalued dollar is helping the purchase of cars, it is ruining and causing hardship to other businesses and one day the whole Country will be affected when the dollar drops in value to where it should be.


Quality

Posted on 19-01-2015 13:59 | By Cars

As first a mechanic and for many years since selling cars I have seen huge variations in quality. Unlike a brand new car all used cars are not equal. Some have been cared for and never had an accident. Some as we say have had "more hits than Elvis", never serviced, never cleaned even! I've seen it all when buying in Japan, there's good and bad everywhere. On the whole the Tauranga consumers want high quality. On the whole the(long term)dealers here provide that. Downside is that quality costs a bit more. But your purchase price is just the start of the cost of ownership. And would you like local backup should it be required? No one regrets buying quality do they? Buy local, support locals too, we all spend money in the town as well as employ locals too.We also back what we sell. Cheers, Bryce.


Save?

Posted on 19-01-2015 14:06 | By Theway

Why is it only retailers think that its a good idea to send all your hard earned cash over seas. I was always told that to build a strong economy the working class had to save and manufacture goods to sell over seas, not send your money over there? It all seems to be about retail these days.


@Theway

Posted on 19-01-2015 16:18 | By mattn

Perhaps you would be good enough to provide the readers a list of NZ made cars so our hard earned money doesn't head overseas...


agree with above

Posted on 19-01-2015 18:01 | By susan

we've been looking and the same car with lower ks can be 3 to 4 thousand cheaper in Auckland, and only a few hundred if you want it shipped to tauranga, one advertised on trademe wasn't even in the yard when we went to look.


@ Cars

Posted on 19-01-2015 21:40 | By Disappointed

Totally agree with you about supporting local which is why we visited both you and your neighbour THM when recently looking to buy. Also agree about quality with our requirements being late model, low mileage, grade 4 or above. The point I was trying to make is that buying "LIKE FOR LIKE" outside of the Bay saved us thousands of dollars. Not withstanding size and scale of the marketplace the premium charged by local dealers is substantial and to be questioned.


@mattn missing the point

Posted on 20-01-2015 10:37 | By Theway

So most people change there cars because their old one just doesnt go any more or because it would be nice to have a newer one? Same goes for TV's and all that other crap from Asia. Bet your parents didnt buy a new fridge just because there was a newer flashier one in the shop? It seems a lot of people get into dept just to have the latest of everything.


Made in NZ?

Posted on 20-01-2015 12:31 | By JayR

Cars made in NZ? Are you joking? What car is made in NZ?


Missing the point?

Posted on 20-01-2015 12:59 | By mattn

You have now introduced an entirely new topic to your previous comment. You were previously lamenting the spending of hard earned money on imported goods. Now you are commenting on "keeping up with the Jonses" on credit.


@Cars

Posted on 20-01-2015 18:45 | By Jimmy Ehu

good cal!!!!


Re: @TheWay..

Posted on 21-01-2015 10:59 | By Rate1

There are no cars made in NZ - has been like this for many years now. I think Toyota in Thames was one of the last to be assembled in NZ. Just a note: Bryce does have quality cars - bought one myself (BMW 323i) plus Autosure Mechanical/Electrical Insurance for 3yrs thrown in the deal. Cheers Bryce


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