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Sharp car price increases are on the way and industry leaders say now is the time for prospective buyers to bargain with desperate dealers.
The falling New Zealand dollar could see car costs soar by 40 per cent, and dealers will either take a hit on their sales volumes or their margins, says ASB chief economist Nick Tuffley.
The price increases come at a time when consumers are already wary about buying cars, so price increases are likely to see demand drop further.
Globally there is a "massive excess" of productive capacity, says Tuffley, and new cars are stockpiling as dealers struggle to shift them.
Dealers will now be forced to put their prices up while the market is still very soft.
Mark McDonald of Holden dealership Moyes Panmure says "huge" price increases are on the way, but there is still old-priced stock around, so it's a good time to buy.
