MEDIACOM-RELEASE-MOTOR-INDUSTRY-ASSOC
CAR PRICES ON THE WAY UP
"If the New Zealand dollar does not recover from its current historical low level, car prices, for both new and used
vehicles, must continue to increase", Mr Perry Kerr, Chief Executive Officer of the Motor Industry Association said
today.
All vehicles sold in New Zealand are imported and are therefore directly affected by the exchange rate. In the last 12
months the NZ dollar has dropped 20% against the Japanese Yen. The price rises that we have seen over the past months
can account for no more than 1/3 of this drop.
"Motor vehicle prices still have a long way to go (up) before the full impact of the weakening exchange rate is
realised" Mr Kerr said.
"The purchase of a new car is a very good investment especially as petrol prices increase. New cars are more
fuel-efficient and are therefore cheaper to run than an older model. The time is now right, before prices increase again
to trade out of that older less efficient vehicle, into a new car" Mr Kerr concluded.
ENDS
MEDIA RELEASE FROM THE MOTOR INDUSTRY ASSOCIATION
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