NZ dollar offers benefits for consumers of imported cars

New Zealand’s biggest importer and retailer of used Japanese cars says consumers here are currently getting a major benefit from the strong kiwi dollar.

2 Cheap Cars is importing and selling about 800 Japanese cars a month across New Zealand. 2 Cheap Car General Manager, Garry Moore, says the high volume - low margin business model operated by the company means the benefit for car buyers here is significant and immediate.

"There has been some talk in the media that the favourable economic conditions for Japanese car buying may not last long-term for New Zealand consumers. Currency exchange rates are notoriously hard to predict and so we are certainly trying to ensure that consumers are able to reap the benefits now," he says.

The favourable exchange rate in recent months has led to a near record number of used Japanese cars now available in New Zealand, at the moment it is estimated that around 19,000 cars are for sale nationally … that volume of cars has put further downward pressure on prices.

The New Zealand dollar is now buying about 15 per cent more again the Japanese yen compared with this time last year and about 30 per cent more compared to two years ago.

Adding to the uncertain future of car prices is a deregulation of the Australian car market. If Australian tariffs are removed from imported Japanese cars, commentators are predicting that additional demand for cars from Japan may mean an increase in prices.

However, Mr Moore says car owners and buyers are enjoying a happy time at present with falling petrol prices to go along with cheaper imports.