Cheap Chinese electric cars could crash NZ used-car values
Cheap Chinese EVs priced at NZ$30,000 now compete with used petrol cars, potentially collapsing the used-car market.
New Zealand's used-car economy has relied on Japan's depreciation for decades. Japanese buyers take early losses in value.
New Zealand then imports the cars years later at low prices. The used-car import model is now under pressure.
BYD's Atto 1 electric car costs around NZ$30,000. It is reliable and works well.
The Atto 1 undercuts the used petrol cars that make up most of New Zealand's fleet. A three-year-old petrol car costs NZ$27,000.
A new electric car costs NZ$30,000. The calculation shifts.
The cheap new car compresses the entire used-car price ladder. New Zealand imports almost 97 per cent of its used passenger cars from Japan.
A shift away from that dependency could reshape the country's automotive economy. The internal-combustion car supports petrol stations, mechanics, parts suppliers and wreckers.
Electric cars need charging, batteries and electronics instead.
- NZ$30,000
- Atto 1 price
- NZ$27,000
- Three-year-old petrol car price
- 97 per cent
- Used cars from Japan
- below $60,000
- Tesla Model 3 in 2021
Why it mattersCheaper vehicles lower running costs for drivers. But local repair shops, parts suppliers and dealers face disruption. This happens as petrol-car values fall.
AustraliaNo direct Australian effect yet, but if Chinese EV prices fall below used-car imports here, Australia's used-car market and automotive repair sector could face similar upheaval.
✓ Claims checked against the source and corrected before publish. checked 15 h ago
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