Plummeting car sales led to slump prices in New Zealand
Plummeting car sales have led to a slump in prices in New Zealand. Comparing March 2008 to March 2007, sales from the public to dealers are down nearly 21% private sales are down by over 7%, while sales from dealers to the public are down nearly 20%. Sales from dealer to dealer have fallen nearly 28%, while registration of used imports of have dropped nearly 18%.
Clive Matthew-Wilson, editor of car buyer’s Dog & Lemon Guide, says that combination of factors has hit vehicle sales.
“First, the economy is in decline, which has made buyers suddenly cautious. Secondly, the new vehicles on sales were ordered during boom times, so there’s now an over supply.
Third, although overall imports of Japanese secondhand vehicles are falling, a few dealers brought in vast number of vehicles in anticipation of tighter government controls on vehicle emission. There are now too many vehicles chasing too few buyers.” Online auction site TradeMe - which is now the dominant force in car sales is the only retailer reporting growth, as more and more commercial car dealers use its website. In the twelve months including March 2008, around 170,000 vehicles were sold on TradeMe compared to 115,000 the previous year.
New Zealand’s second largest auction house, Turners won’t reveal sales figures but says that lower prices have meant a major increase in bargain hunters on the auction floor.