The golden era of used imports from Japan is over. What is next?

This article was written just prior to the government watering down the CCS standard under urgency.

There is no doubt that used car importers and used dealers are having a tough time. The New Zealand economy is sluggish, especially in Auckland and Wellington; sourcing stock out of Japan is tough, with increased demand from other countries and the impacts of the clean car standard (CCS) all making sourcing affordable cars difficult. The result is more expensive older cars with higher kilometers and slimmer margins, which in turn impacts volumes and profits. It is an imperfect storm.

Less Cars: Yearly volume differences (YTD Sept)

Comparison	Absolute change	Percent change
2023 vs 2022	−6,610	−7.43%
2024 vs 2023	−6,294	−7.64%
2025 vs 2024	−11,907	−15.64%
2025 vs 2022 (overall)	−24,811	−27.87%

Data Source: NZTA. Insights, Boost Auto.

2022 = 89,066; 2023 = 82,456; 2024 = 76,162; 2025 = 64,255

Older Cars Too: Aqua and Prius — weighted mean age at import (2022–2025 YTD September)

Model	2022	2023	2024	2025	Change 2022 → 2025
Toyota Aqua	7.34	9.83	9.83	9.83	+2.49 (+33.9%)
Toyota Prius	9.20	10.49	10.49	10.49	+1.29 (+14.0%)

Data Source: NZTA. Insights, Boost Auto.

However, what is clear is that what consumers buy as used vehicles and what consumers buy as new vehicles is divergent. New Zealand's best-selling car is really a truck, and even if we exclude the Ranger and Hilux from the data, our best-selling car starts at $49,000. The RAV4 in NZ mirrors its global position as a best seller.  

Of course, the three best-selling used cars in New Zealand are also hybrids, and two of them are Toyotas. The Aqua, the joyrider’s favorite, is cheap motoring personified and is our best seller. A low purchase price, fabled Toyota reliability, and a modest consumption that's in line with an abstinent vicar mean there are plenty of reasons to spend $10-$15,000 on an Aqua.  

Choice of fresh imports for consumers, however, is becoming limited. Want something a bit spicier than a hybrid with a CVT? There is little that sets the heart racing like a fresh import; consumers need to look to New Zealand for new stock.

Photo by Suzanne D. Williams on Unsplash 

What might tomorrow look like for used car dealers? It could be survival of the fittest, as it is clear that used dealers need to diversify. Perhaps more stock needs to be sourced closer to home, and that would mean independent used car dealers sourcing more second-tier vehicles from the franchise network. Already large retailers like Turners and even 2 Cheap Cars have understood the growing pressures on being an importer retailer.

As every new car dealer knows, dealer profitability isn't just about margin on vehicle sales plus finance and insurance. At some point used importers will tweak and develop their business to increase customer satisfaction and loyalty through in-house servicing. Whether this means that a used importer might end up partnering with or owning a Pit Stop or an AA Service Centre or a Bridgestone or bringing their entire service operation in-house, it is clear that business owners will be looking at all options.

One bright light on the horizon may be emerging Chinese brands. We are probably only just past halfway on brands looking to enter the New Zealand market. New entrants are rapidly running out of good dealers who can sell their new brands, whether it's because of dealer appetite or being blocked by existing brands that they already represent within their dealership portfolio. And yet there are new brands looking for new dealerships.

An emerging brand is likely to be less keen to appoint a used car business without a workshop. They have little desire to teach your business how to run a warranty operation and to run a workshop profitably. Used car dealers who have set their sights on running an effective workshop will already understand the key goals and metrics needed to make a workshop both efficient and therefore profitable.

This means that there is probably a race on. With plenty more new brands, many with scale, yet to arrive, and limited options for retail partners, it may well be up to the used car dealers to step up to the plate. This could be a transformational time for used car dealers wanting to grow and secure their future business.

A word of caution though: bringing in new ICE cars from China will be challenging for OEMs. There is likely little or no margin on vehicles like the Chery Tiggo 4 at $24,990. Its emissions and the impacts of CCS will see to that, which means dealer margins are likely skinny too. Importers will be thinking hard about how to sell more vehicles with a plug. For some dealers with a history of selling ICE-powered vehicles, this transition will be hard.

The race won’t be without challenges, and it is unlikely to be easy, but in five years’ time the landscape will likely look very different. The pace of incoming brands and the medium-term shift to electric is still part of the marathon all dealers should be taking part in.

©2025 Boost Auto.

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Boost Auto is an automotive consultancy working in seven main areas.

•                  Sales Training

•                  Sales and Marketing effectiveness for brands and dealers

•                  Market Insights & Trends

•                  Business planning and facilitation

•                  Operational Effectiveness

•                  Get Ready Automations

•                  Go To Market strategies for emerging brands.

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[1] On NZ Cheap Cars website, used for research for this article, they claim that the Aqua is cheap to service because of ‘Reduced maintenance costs due to fewer moving engine parts.’ That statement might not be true.