An increase in new vehicle registrations in March meant that Kiwis bought more cars, according to the Motor Industry Association of New Zealand (MIA).
MIA data showed that there were more than 14,000 newly registered cars for the month, up 1% year over year. For the first quarter of 2018, sales have increased 7% to more than 40,300 vehicles.
Demand for commercial vehicles primarily served as the reason for the higher sales activity in the previous month. Passenger car sales, however, fell by 2% likely because many buyers preferred second-hand vehicles. Many Kiwis bought used cars in Tauranga or Auckland, for instance, due to high car prices.
Despite the mixed growth, MIA chief executive David Crawford said that the primary market “is mature and remains strong.” Since 2016, the economy and net immigration have been instrumental in sustaining demand, according to Crawford. If you would rather buy a used car, remember that the process entails a different approach.
Used car guidelines
Financing should be your priority when planning to buy a pre-owned vehicle. Be sure that the advertised price would be all you need to cover under the deal. If you fail to research the car’s history, you may end up being liable for any outstanding debt that is tied to the vehicle.
Insurance will also be necessary even if you are buying from the secondary car market. Remember that dealers or private sellers should also be able to present a warrant of fitness, which should be less than a month old.
The price of a new car purchase in New Zealand varies from buying a used car. A brand new vehicle saves you the effort of thoroughly inspecting it before closing a deal, yet second-hand cars will save you money.