'Astonished': Near-record month for luxury car sales in Hawke's Bay

The A-Class Hatchback has been the most popular purchase post-lockdown at Mercedes-Benz Hawke's Bay. Photo / Supplied

Hawke's Bay's upper classes can't go on winter getaways to Europe so they're spending up on luxury items in the region instead, businesses say.

With tight travel restrictions worldwide, it's unlikely many Kiwis will be leaving the country any time soon.

Mercedes-Benz Hawke's Bay general manager Spencer Pallesen said 80 to 90 per cent of his clients are awaiting large refunds from airlines, tours and cruises after cancelled trips and are pre-planning what they'll be spending it on.

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"We certainly have seen an increase in activity and sales post-Covid lockdown," he said.

"It's been busier than ever with inquiry up and sales overall up.

"Last month we were one car short of a record month and had our best month ever on finance contracts written."

Pallesen said recent sales of the Mercedes-Benz compact range, especially the "standout" A-Class Hatchback, had been the most popular purchases.

A report by global market research firm IbisWorld says the New Zealand economy is expected to shrink by 3.9 per cent this year.

The report outlined that the loss of tourism revenue and the lack of access to foreign labour was expected to result in a "severe economic contraction".

Pallesen hoped the positive sales figures continue.

"It's interesting talking to dealers up and down the street and around the country - everyone seems to be very busy as a whole," he said.

"Let's hope we buck recession talk and the wheels keep turning as they are currently."

It isn't just luxury cars that region's moneyed residents are after, with the appetite for boats also high.

Hawke's Bay customers are upgrading from boats like the Senator RH650 to bigger models post-lockdown. Photo / Supplied

Hawke's Bay Marine sales and service manager Tom Forbes said their service work and sales are up on previous winters.

"Like many businesses, we spent lockdown pondering our future and survival. However, since reopening our doors we have been astonished by our customers' support.

"With people now unable to travel internationally, we believe many New Zealanders are choosing to explore their own backyard. And what better way to explore New Zealand than via sea."