Kiwis likely to delay vehicle purchase – study

Buying big ticket items like vehicles will be delayed by about 90% of consumers.

That’s according to a study commissioned by New Zealand research firm Penrose Data, comparing consumer attitudes before and after the first week of the COVID-19 level four lockdown.

It found most Kiwis lack confidence in their personal financial stability through the crisis, putting off major purchases for some time.

This figure is highest for recreation/sports products or computers (34%), vehicles or property (33%), appliances (32%) and furniture (29%).

The survey included all vehicles – whether new, used, electric, hybrid or internal combustion engine (ICE).

Less that half (45%) of the 1000 Kiwis surveyed on March 21 prior to the March 25 lockdown and again on March 27 are confident in their financial stability, a figure which has remained constant prior to and during the lockdown, Penrose Data says.

As a result, more than 90% of consumers will put off making at least one major purchase due to COVID-19.

Only a 10th (9%) of Kiwis say it won’t impact their major purchases.

The majority of New Zealanders support the Government’s handling of the COVID-19 situation though.

The research finds consumer optimism the COVID-19 crisis will improve increased significantly from 14% to 32% after the lockdown began.

Despite the financial impact, consumer confidence in the Government’s response to COVID-19 has increased significantly following the first week of the lockdown with seven in 10 (70%) believing the response has been effective so far.

Penrose Data chief executive Geoff Walmsley, caught up in his fourth week of lockdown in the Netherlands, sees parallels between the two markets and initiated the study to support Kiwi businesses.

Walmsley says the company specialises in providing research insights for Kiwi fast-moving consumer goods (FMCG) exporters but recognises it is often the small and medium enterprises (SMEs) which are most in need of information at this time.

“The Netherlands is currently in its fourth week of nationwide lockdown in response to the COVID-19 crisis – where the curve is just starting to flatten off.

“The lead time ahead of the New Zealand market gave us a better understanding of the challenges that would be faced for consumers and companies alike and allowed us to measure attitudinal shifts as the level four changes were implemented,” Walmsley says.

“We believe that access to timely information can help businesses better navigate the challenges ahead and we will be providing weekly insights throughout the lockdown period.”

Walmsley says despite the dip in local consumer confidence, key export markets such as China have reopened and demand for New Zealand products will support its economic recovery.