Still Incredible Demand For Used Import Cars At New Zealand Marketplace

A significant weakening of the Japanese yen is fueling "incredible demand" for used import cars in New Zealand. But with easing new car sales, and business and consumer confidence now pumping the brakes, economic research firm Infometrics believes car sales will start to slow over the coming months.

Infometrics said car registrations overall were at the highest level for an August since 2006.Used car sales were leading the way, but new cars were growing at a more moderate place, and there were signs it could slow. Monthly new car sales had grown at rates higher than 10 per cent year-on-year in the early months of 2014, but grew only 3.7 per cent in August."With the New Zealand dollar likely to have now peaked and consumer and business confidence having fallen over recent months, we anticipate that new car sales will plateau as 2014 draws to a close," Infometrics said. However, the research firm still expected car sales would be at least 207,000 annually for the next five years. More than 218,000 cars were sold in New Zealand last year.