Not Just a Farm Truck Anymore
The massive rise in new ute and SUV sales over the past five years is strangely counter-intuitive.
Compared with a car, utes and SUVs are expensive to buy and run, harder to park and they put out more greenhouse gases.
Sales of new SUVs have increased from around 20,000 just four years ago to around 50,000 this year.
Utes are traditionally a practical choice for tradies, farmers and others needing a sturdy tool to get them and their gear around. So why have they suddenly become so popular? Sales of new utes have more than doubled in the last four years from 15,000 to now over 30,000.
Dealers like Tom McNamara of Hamilton’s Fairview Motors say, “Utes aren’t just a farm vehicle anymore. Around 20 percent of our new utes are being bought by people who would previously have bought a sedan. We have quite a recreational society – people are going fishing, towing boats and so on. Until recently it was difficult to find a secondhand ute as there were so few around so that may have something to do with the demand. Of course, utes really hold their value so I suspect the new market will slow as more used ones enter the market."
He says the Waikato dairy industry, tradies and construction sector make up the bulk of sales, with a lot of the utes bought via lease companies.
As the figures in the graph show, ute and SUV sales increased, while passenger car sales have dropped. But the overall numbers of all three reflect the big increase in sales of new vehicles over the past decade.
MTA Dealer Services Manager Tony Everett says, “The high sales volume is linked to the higher valuation of homes, tourism has boosted rental sales, employment is strong and business is feeling buoyant. Another factor is the earthquake and building activity, which has stimulated growth.”
What's driving private ute sales?
And the rise in private ute sales? “Fashion trend,” reckons Tony.
There may be something to this. Jason Fell owns a Hamilton company that coincidentally makes covers for ute trays. He’s just bought a 2WD Ford Ranger XLT ‘for work’. But in reality he’s driving it to and from work, only occasionally uses it for deliveries and has no intention of going off-road.
“I wanted this ute because I can take the kids to football, put my jetski on the back and it can take three kids and the family mountain bikes if we want to go somewhere. I like it because it’s more masculine than a car, it’s higher up and it can tow my 1969 Camaro on a trailer when we head off to shows. The wife thinks it’s too big.” Considering the wife runs around in a Falcon, that’s saying something.
Jason has added flares, 20-inch alloy wheels and had the interior colour coded. All for work, of course.
Brodie Marchant at Wellington’s Rutherford and Bond Toyota says new utes have all the sophisticated technology and features a new car has.
“They are versatile, ride well, have electric steering and are extremely comfortable. So, for some buyers, they are a good alternative to a car.”
He says they are largely bought by men and often tricked out with new wheels and different suspension.
“They may go off road a bit but they don’t intend to take their $70,000 new ute out bush bashing.”
One of his recent sales was to insurance manager Tony Gaskin.
He bought his Toyota Hilux TRD 2016 for safety. “I wanted the extra height, air bags, and the separation of storage from my family.
“It has the same technology as a car, I can throw in the kids’ cricket gear, my golf clubs live on the back, and it’s really handy for firewood. I’m not planning on much off-roading though.”
Of course, it needed a few extras. Tony Gaskin added a sports lid, leather interior, paint protection, a bonnet protector and nudge bar.
Finally, Tony Everett says, most men could persuade themselves a ute is just what they need. “The fantastic resale value keeps the accountants happy, the versatility, bulk and safety features ticks the ‘family’ box, and just quietly, the grunt and style gives his ego a lift.”