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The Popularity of Used Cars in New Zealand

Line of used cars

Make no mistake about it: New Zealand is aggressive in selling new cars. In fact, in 2017, the country welcomed the Seat, Infiniti and Tesla brands to their local market. But many Kiwis still buy used cars. What could be the reason behind this trend?

No Tariff

New Zealand doesn’t impose any tariff on imported motor vehicles unless they are motor homes (used mainly for habitation) and ambulances. That doesn’t mean, however, that importers won’t have to pay anything. They are subject to a 15 per cent tax. If the vehicle’s value is at least $1,000, importers would need to pay an entry transaction fee of $29.26 and a levy of $19.98 for each unit.

The removal of the tariff affects the used-car market in two ways. One, it increased the number of used vehicle imports over the years. Second, because of the huge and continued growth of the market, a lot of those on sale are already used cars.

Cost of Vehicles

New Zealand doesn’t have the lowest price for used cars. In fact, it ranked 19th out of the twenty countries surveyed for the most expensive cars. But the price of the car isn’t the only factor to use to determine total costs.Insurance is another factor to consider. The country doesn’t make it compulsory, so that can already save you as much as $600 a year (although it is highly encouraged to get one).

Moreover, New Zealand has the fastest depreciation rate in the world — more than 50 per cent, according to Carspring. For many, therefore, it makes more sense to invest in used cars for private use.

The biggest challenge with used cars is the customer support you receive. Fortunately, if you’re driving a Japanese car, you can get the components you need quickly and easily. You can buy Nissan parts from K.D. Auto Spares in West Auckland, for instance. The car shop can also install the part for you, which may be to your advantage. It lessens the chances of making costly errors, after all.

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