Demand for cars surging after Auckland flooding and cyclone

Demand for cars is sky rocketing with Cyclone Gabrielle and Auckland's flooding ruining thousands of vehicles. 

The industry was already facing an existing shortage after manufacturers cut production during Covid-19 and importing used cars was no longer economical. 

At Zebra's Broken Car Collection in Manukau, a car from Napier arrived with silt caked onto the seats.

Moisture had been the perfect breeding ground for green fungus to grow. 

The keys were still in the ignition, a sign it was abandoned abruptly. 

Many of the flooded cars end up here, first the company bid on them, then they are assessed to see what is usable. 

Chief operating officer Jason Spitzer said for water damaged cars that was pretty much nothing. 

"All the electronics and that we cannot use, I mean they just won't work again if the water's been through the engine and stuff like that, you won't be able to use that again, so for us, that's just putting it into the scrap."

The flooded cars got stripped apart, drained of oil and petrol, de-tyred and then sent to the "jaw" to be crushed - with water still gushing out. 

So far they had processed about 300 flooded cars from Auckland, but things were ramping up and they were expecting to process hundreds each week, with many on the way from Napier.  

Figures from the Insurance Council showed there were just over 5000 claims for motor vehicles from Cyclone Gabrielle, totalling over $70 million.  

Insurance companies said about 80 percent of vehicles damaged in the Auckland floods were written off. 

But Motor Industry Association David Crawford chief executive said there was a shortage of new cars to fill those claims. 

"So we've been affected by shortages, production disruptions and lockdowns, we've been trying to fill back orders for the last two and a half years."

The waitlist for a hybrid vehicle or popular make like Toyota could be up to nine months, he said. 

"The franchise dealer will talk with the New Zealand distributor to understand what the supply is and whether they can juggle shipments ... patience is still going to be required and it's quite a trying time."

That was causing many to turn to used cars instead, with prices already rising in recent years. 

Crawford said over the last four years prices had risen by 40 percent. 

Turners Used Cars were down 10 percent of what they would usually stock as people got desperate for new wheels. 

Chief executive Todd Hunter admitted that was part of why prices were more expensive. 

"There's no denying the fact that there are less imports coming into the country due to the clean car standard and the clean car discount and then you overlay that with with an increase in demand and obviously it is having an inflationary impact." 

As the cost of living continued to rise and the government's clean car discount progressed many people were hunting for hybrids or small hatchbacks.

Hunter said it was a price point driven market - "60 percent of New Zealand has spent less than $10,000 on a car and 80 percent spend less than $20,000".

Buyers looking privately should be wary of used cars that could be water damaged, with many people still trying their luck to sell them, he said.

"Certainly getting an inspection from either a mechanic or someone like the AA... they may look OK, but they will have problems later on four or five months down the track."