KEY POINTS:
New Zealanders are showing no sign of shunning gas-guzzling cars, and sales of bigger-engined vehicles have leaped despite rising fuel costs.
Demand for cars with motors of 3000cc and over have surged 13 per cent in the three months to September, according to used-car sales statistics Turners Auctions released yesterday.
It was the second quarter in a row that sales of large cars increased. The numbers are up 27 per cent on the company's first-quarter sales from March.
Large-car sales now account for 10.8 per cent of Turners' overall vehicle sales but its general manager of marketing, Todd Hunter, predicted a sharp turnaround when a drop - off in the dollar occurs.
"When it does, we can expect a sharp turnaround as the impact of increased running costs takes effect."
Mr Hunter said the strong dollar was the main reason for the sales pf larger vehicles, reflecting steady petrol prices that make running larger cars more affordable.
Mike Vinsen of Mike Vinsen Motors in New Lynn said car sales had been steady and the past couple of months had been some of the best he had seen.
Most of the large cars that were being sold were going to people who were older and could afford to run them. "Petrol prices are not quite as crucial to them. If you had a family you would be little more circumspect."
Mr Vinsen said some dealers were struggling while others were doing good business, which made the situation more confusing.
Greenpeace climate campaigner Susannah Bailey said New Zealand had the highest per capita car ownership in the world and private car use was a significant contributor to New Zealand's skyrocketing emissions of greenhouse gases.
"Twenty per cent of our total emissions come from transport. The science of climate change is simple; the more greenhouse gases we put into the air, the worse the impact.
"We need the government to implement urgent improvements to public transport and cycling facilities so there are viable alternatives to private car use," Ms Bailey said.
Perry Kerr, chief executive of the Motor Industry Association, told the Herald there were probably several reasons used large cars were selling well despite soaring petrol prices.
"New-car sales have been declining so there is less supply there. Also, if people are getting a good deal they might not be as concerned with petrol prices."
Mr Kerr said there would always be a natural market for large cars for people who often towed boats and horse trailers.
Petrol and diesel rose 13c and 9c a litre respectively during October, although the cumulative effect was less due to an 8c reduction earlier in the month.
Petrol prices started the month by dropping to $1.60 a litre, rising to $1.69 by month's end.
Diesel rose from $1.15 a litre to $1.20 in the main cities.
According to AA PetrolWatch, a year ago motorists were paying $1.44 a litre for 91-octane petrol and $1.04 a litre for diesel.
