Used imports older, old 4wd sales collapse

Media Release
31 July 2006

Used import cars keep getting older, but sales of old 4WDs collapse

According to Land Transport New Zealand statistics released by the Motor Industry Association, the average used import passenger car sold for the first time in New Zealand in the first half of 2006 was 8.32 years old, compared with 8.01 years for the full year 2005.

“This is a continuation of the trend we’ve seen for the last several years,” said Perry Kerr, CEO of the Motor Industry Association. “As used importers struggle to compete on price against New Zealand new used cars they chase older and older stock, thereby infesting our roads with old-generation technology which is doing nothing for either safety or the environment.”

There’s an interesting trend with used import four wheel drives though. The average age of used imports in this category is getting younger.

During January-June 2006 compared with the full year 2005, total used import 4WD sales are down 20.9% on a monthly basis, but the entire reduction has taken place in the older age categories. Sales volumes of 4WDs 8 years old and younger have remained relatively static, but those 9 years and over are down by almost 50%.

“This is an interesting development,” said Mr. Kerr. “We’d attribute it to unfortunate experiences with badly maintained old diesel engines, the high cost of fuel, tyres and other maintenance for those who can least afford it, and the glut of old 4WDs on the market.”

“It’s unfortunate that consumers, through their bad experiences, have to ultimately decide the winners and losers in the market,” Mr. Kerr said. “It would have been so much simpler for everyone, and better for the environment, if we’d always had the rolling age limit on imported used vehicles which now seems a possibility, but for political rather than practical reasons.”

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Passenger Cars:
Ex-overseas cars registered in 2006 January to June

Vehicle Year Vehicle Age TOTAL % of total
1911 95 1
1915 91 1
1923 83 2
1924 82 3
1925 81 4
1926 80 4
1927 79 2
1928 78 5
1929 77 3
1930 76 4
1932 74 1
1934 72 2
1935 71 3
1936 70 2
1939 67 2
1942 64 1
1944 62 1
1946 60 3
1947 59 1
1950 56 3
1951 55 2
1952 54 2
1953 53 1
1954 52 1
1955 51 6
1956 50 15
1957 49 17
1958 48 12
1959 47 16
1960 46 12
1961 45 8
1962 44 6
1963 43 21
1964 42 17
1965 41 37
1966 40 39
1967 39 43
1968 38 22
1969 37 24
1970 36 24
1971 35 13
1972 34 11
1973 33 11
1974 32 12
1975 31 3
1976 30 10
1977 29 11
1978 28 8
1979 27 10
1980 26 9
1981 25 10
1982 24 11
1983 23 3
1984 22 9
1985 21 36
1986 20 7
1987 19 3
1988 18 8
1989 17 11
1990 16 24
1991 15 67
1992 14 197
1993 13 299
1994 12 1,517 2.29
1995 11 3,796 5.73
1996 10 12,973 19.58
1997 9 15,304 23.10
1998 8 10,431 15.75
1999 7 6,456 9.75
2000 6 4,420 6.67
2001 5 4,070 6.14
2002 4 2,437 3.68
2003 3 1,676 2.53
2004 2 821 1.24
2005 1 1,094 1.65
2006 0 91 0.14
TOTAL 66,242

MEAN AGE 8.32

4x4s:
Age profile of vehicles registered from Jan - Jun 06 with vehicle class MB or MC (data current as at 22/07/06)

Vehicle Age pass vans 4x4's Total % of used imports % in same age bracket 2005
Under 1 year 0 0 0
1 year 48 48 0.30 1.06
2 years - 69 69 0.44 0.48
3 years 3 79 82 0.50 0.75
4 years 4 201 205 1.28 1.34
5 years 15 211 226 1.34 2.42
6 years 19 274 293 1.74 2.53
7 years 36 681 717 4.32 6.32
8 years 96 1865 1,961 11.84 12.99
9 years 180 2458 2,638 15.60 35.53
10 years 194 1209 1,403 7.67 15.43
11 years 123 773 896 4.91 11.90
12 years 35 217 252 1.38 4.19
13 years 14 147 161 0.93 2.83
14 years 6 82 88 0.52 1.18
15 years 6 26 32 0.17 0.50
16 years 2 25 27 0.16 0.17
17 years 2 12 14 0.08 0.10
18 years 1 6 7 0.04 0.05
19 years - 7 7 0.04 0.05
20 years 3 4 7 0.03 0.06
21 years 1 3 4 0.02 0.02
22 years - 4 4 0.03 0.02
23 years - 3 3 0.02 0.02
29 years - 1 1 0.01 0.01
31 years - 2 2 0.01 0.00
33 years - 1 1 0.01 0.01
36 years - 1 1 0.01
37 years - 1 1 0.01
41 to 50 years - 2 2 0.01
51 years and over - 8 8 0.05
Total 748 15753 16,501
Total used imports - 15,753

ENDS

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