Why are new and used cars cheaper in Page 1 / 2

rsr72, Mar 7, 11:02pm
the UK than in NZ!
There are floods of near-new, and used, imports coming into NZ from the UK and cheaper than local cars. Why, with no taxes levied here other than GST, are our new and used car prices so damned high!

-(and it's not due to our recently-higher dollar).

petal_91, Mar 8, 12:05am
UK cars have rust problems due to their salting the roads. You'd only buy a used UK import if it is really cheap.

freedomaira320, Mar 8, 1:14am
I think you'll find it is. A couple of years ago importing from the UK would have been prohibitive. The massive exchange difference has changed all that.

kazbanz, Mar 8, 1:22am
RSR --its because untill recently there has been no real alternative.In the same way that jap cars 20 years ago were expensive relatively.
Now we can buy near new UK imports that ar ex lease etc and have had their first MASSIVE price drop. The economics of it only seems to work for near new middle to high end cars because of the corrossion issues and stiff competition from Jap import product.
I must say the new car dealerships really have bought this apon themselves byt pushing used dealers into exploring alternate sources of product.
I bet UK imports would have been a big fat nothing if they hadn't been pushing with all their might to ensure the current emission laws were put through. -eseentially cutting their own throats.

freedomaira320, Mar 8, 2:14am
In 2009 a 10000 pound UK car would've cost about NZ $30k. Not worth it. Today a similar value car would only cost $20k. There's your answer right there.

elect70, Mar 8, 2:16am
Shortage of jap cars due to thee quake &people holdingthemlonger . .These dayscars are factory undersealed&poms dont usethe salt on roadsas much as they used to, more mechanisedremovalnow . Good time to buy ausedtop endcar, AM, Jag , MercA . Few dealers there willspot you a carin your price range & spec& arrange shippingetc.

esprit, Mar 8, 2:20am
Lots of salt and corrosion on UK cars still. Not so important with new or near new cars though.

I've imported and rebuilt UK cars recently :)

rsr72, Mar 8, 2:25am
I had noticed 2-3 years ago, and well before our dollar increased substantially in value, that comparing new UK floor prices with NZ new priceswe were a lot more expensive than there.

phillip.weston, Mar 8, 2:50am
Many reasons:

1) Supply far exceeds demand in the UK compared to NZ.
2) Cars can fail their MOT (equivalent to a WOF) quite early due to rust
3) Their government has an incentive program to scrap old bangers and make newer cars more affordable. The value of older cars has plummeted as a result
4) They live in a country which has direct access to all the European makers and distributors. To buy a car brand new over there is even cheaper than in NZ
5) It costs lots to insure a car depending what category it is in. This pushes down the value of unfavourable category cars (ie performance or large cars).
6) You are comparing two different economies. NZ isn't the UK and vice versa.
7) Petrol costs the equivalent to NZ$3/liter in the UK.

You think NZ is so bad! Australia is worse. Where else would you see a mid-90s Toyota Corolla sell for the same price as a 2000's Holden Commodore or Ford Falcon! Australia of course. They have so many cheap and nasty cars brand new for $10-15k like Protons, Cherys, Great Walls etc yet their used cars really hold their value.

Like any where though, if you look long and hard enough you can pick up the bargains! I am in Australia and I bought a '98 Volvo S70 T5 for $2000 and then sold it for $3600 doing very little to it. Have just last night picked up an '03 Ford Focus with a busted water pump for $1200 and I'm very likely to be able to turn around and sell it pretty soon for $4500-5000+

I'll be off to the UK mid way through this year and I am looking forward to being able to pick up a mid 2000's car for 1000 quid.

freedomaira320, Mar 8, 2:56am
And all of those reasons play second fiddle to the biggest reason. Our dollar buys 50% more sterling than it did four years ago - this has the effect of making our cars seem expensive, and theirs cheaper. It's simple maths.

socram, Mar 8, 3:42am
Which is of course the upside of our high dollar.Great time to buy not just secondhand cars, but supplies and any overseas items not manufacturedhere or sold here at sensible prices.

I do still have some UK pounds in an account there, but at the moment, I only use my NZ dollars - and that includes all credit card purchases - when I am over there.

brapbrappy, Mar 8, 7:49am
Depends where in the UK they have been used. Many UK roads never get salted.

llortmt, Mar 8, 8:45am
LOL
Mate you're dreaming!

socram, Mar 8, 9:08am
Have to agree. My son has just moved away from a steep side street that never got salted.Also, most winters, there has been no snow at all in the south west.
We don't get snow in Auckland so why would you think #13, that the UK is any different!Do you think they salt dry roads!

llortmt, Mar 8, 10:26am
Mate I know you're a pom and I lived for years not too far from you in Brighton. You well know that in the winter ALL major roads are gritted and salted when it gets really cold and icy. Yes some/too many rural roads don't get done but the average vehicle will encounter salted roads every winter. I take it your son drives on his steep side street exclusively then!!

unideck, Mar 8, 11:05am
Salted roads, what a cop out of an excuse. Considering most major towns/cities here in NZ are smack bang on the coast, what does that tell you - most cars based in Auckland will see more salt than the UK cars without a doubt. Times have moved on dramatically regarding rust proofing too so the old school believers that all cars from the UK are rust buckets are simply stuck in the 80's.

esprit, Mar 8, 11:11am
I'm Cornish and they salt the roads there in the winter, even when no snow, when it's cold to try to prevent black ice. Yes, cars suffer less there than they would up in Northumberland or Aberdeen, but they rust out MANY times quicker than a kiwi car. except maybe cars that live in coastal Wellington.

llortmt, Mar 8, 7:03pm
Thank-you

kazbanz, Mar 8, 8:00pm
Think about that though. Why then arent NEW euro cars plummetting in price!

intrade, Mar 8, 8:07pm
why is building material in this country 4 time as expensive as in europe, and why can i buy european beer cheaper then newzealand made beer!
and cheese is like gold in this country even do most is not even cheese. unless its 57$ a kg.
one word "GREED"
also building materials are from germany just got some electric junction box and its got only german writing on it cost in europe be like 3 euro from any outlet here i just paid lets see 35$ something -15% discount because i asked for a discount so 30$ for a 3 euro product.

kazbanz, Mar 8, 8:09pm
Sorry mon I don't agree. Based TOTALLY on what I have personallyseen at compliance centresand rust treatment/removal places arounddaucklandI would suggest it is something to look at closely when buying a UK import car.
Yep anything 3 years old and younger seems AT THIS STAGE not to be an issue but older cars are arriving with clearly visible corrossion underneath.
The importer is required to remove/treat all rust so a good sighn of one that WASrusty is fresh underseal underneath the car.
In fairness the ones i've been seeing (and its not big numbers) have all been "pinged" for the rust or were in the process.

intrade, Mar 8, 8:17pm
european cars have 12 year factory no rust warranty like vw my 2001 bora tdi is ex uk no rust, and my fiat only rusted because it was imported as smashed vehicle in 94 or so both fully galvanised fiat have fixed there rust problems early 90s with the tipo being the first. Japanese cars howeverare usually no much left after 10 years. my brothers nissan sentra the rear axle almost fell out of the car because nothing held on to it anymore, he recond it myght be fixable i said no your dreaming i can stick my arm inside the car thru the rear wheel arch lol.

grangies, Mar 8, 8:17pm
I guess the mongrels fix their new car prices regardless of the NZ dollar.

I have noticed some price drop in tools from Europe though. Like Festool from Germany, and Devilbiss from UK.

intrade, Mar 8, 8:22pm
of course they fix prices this country is as bad as the russian mafia. i know quite a few stories, they also block imports at border. for cement for example that comes from high ranking people of the cement industry . I suspect its similar for food and all other productsyou just dont see it officially.

intrade, Mar 8, 8:28pm
classic example holden ampera volt cost 50,000 swiss franksin australia its 50 something au$and here its 84 tausend nz$. over 20 grand in to someones pocket.

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