Car sales fall - luxury cars hit worst

Luxury cars sales have fallen sharply - but the car whose sales the Prime Minister quoted as a sign of bad economic times seems to be bucking the trend.

Last week John Key used poor United States sales of the new BMW 7-series - 10 were sold in February, compared with more than 1500 in the same 2008 month - as an example of how much other countries were hurting in the economic crisis.

But New Zealand Motor Industry Association figures show New Zealand sales of the top-of-the-line BMWs moving in the opposite direction.

In February, New Zealand - whose population is approximately 1.3 per cent of the United States' - bought three BMW 7-Series, compared with one in February last year. Nine of the vehicles sold in the year to February, compared with two the preceding year.

When it came to luxury cars overall - the likes of Alfa Romeo, lower-model BMWs, Ferrari, Maserati and Jaguar - sales crashed in the year to February, as falling confidence in lending, investments and job security turned buyers away from more expensive cars.

Clive Matthew-Wilson, who edits the car buyers' Dog & Lemon Guide, said people had been rethinking their priorities and realising they did not need a luxury car.

"They are something everyone wants in good times and everyone is desperate to unload in bad times."

Even people with plenty of money felt uncomfortable driving luxury cars when others were losing their jobs.

Motor Industry Association figures show sales of sports cars worth more than $200,000 and large cars worth more than $100,000 fell 43 and 46 per cent respectively in the year to February. Each category represents about 0.2 per cent of new passenger car sales.

The figures showed the most expensive cars fared worse than average in a bad year for the car industry overall.

Sales of all new passenger vehicles fell 31 per cent in the year to February from a year earlier.

LAP OF LUXURY

New vehicle registrations for luxury brands

Alfa Romeo
Jan/Feb 2008 - 54
Jan/Feb 2009 - 15

Aston Martin
Jan/Feb 2008 - 5
Jan/Feb 2009 - 2

Bentley
Jan/Feb 2008 - 6
Jan/Feb 2009 - 3

BMW
Jan/Feb 2008 - 255
Jan/Feb 2009 - 147

Chevrolet
Jan/Feb 2008 - 1
Jan/Feb 2009 - 0

Ferrari
Jan/Feb 2008 - 6
Jan/Feb 2009 - 3

Jaguar
Jan/Feb 2008 - 20
Jan/Feb 2009 - 8

Lamborghini
Jan/Feb 2008 - 1
Jan/Feb 2009 - 1

Maserati
Jan/Feb 2008 - 15
Jan/Feb 2009 - 7

Mercedes-Benz
Jan/Feb 2008 - 147
Jan/Feb 2009 - 164

MG
Jan/Feb 2008 - 1
Jan/Feb 2009 - 0

Porsche
Jan/Feb 2008 - 35
Jan/Feb 2009 - 26

Source: Motor Industry Association