The Motor Trade Association warns changes to warrant of fitness rules will lead to about 2000 job losses.
From 1 January this year, any car registered in New Zealand since the start of 2004 will only have to get a warrant once a year. In July, that rule will be extended to cars registered since 1 January 2000.
Association spokesperson Ian Stronach says there will be over 1 million fewer warrants issued in 2014 as a result of the changes and most businesses will take a financial hit.
Meanwhile, Transport Minister Gerry Brownlee says he does not believe there will be more unsafe cars on the road as a result of the changes and consumers will save money.
A public awareness campaign will be launched to remind drivers they have to keep their cars legal and road-worthy between warrant checks, he says.