Sales of new cars hit a record high last year with 165,287 purchased, up 38% on 2020 according to the Motor Industry Association.
One factor thought to be driving the hot market is buyers splashing cash they’d normally spend on overseas travel.
“Normally New Zealanders take about $7 billion out of the country. But they’re not, so they’re spending it on things like new vehicles,” said David Crawford, CEO of the Motor Industry Association.
Wellington dealership Gazley Motors had a bumper 2021 and it’s continuing into the new year.
“What are we on? Seven today, 10 yesterday,” said dealer Michael Hammond.
But supply of new cars is low due to Covid shipping delays and that’s pushing up demand for used cars.
“The used car market is very, very strong at the moment. So you're getting good trading figures which then makes the new car purchase an easier transaction,” said Hammond.
The surge in sales means there are now an extra 100,000 vehicles on the roads, taking the national fleet to about 4.4 million.
“The pure number of cars that we have is quite high by international standards, probably the second highest in the world after the USA, and that would be a bit of a worry,” said Crawford.
That’s because transport makes up a third of New Zealand's greenhouse gas emissions.
Electric and hybrid vehicles are growing in popularity, accounting for 14 per cent of sales last year. But the most popular purchase for 2021 was a gas guzzler, the Ford Ranger pickup truck.
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