New passenger and commercial vehicle sales fell to a 5 year low of 6,537 in November from 9,340 in October as car lending and consumer demand dried up, figures from Land Transport NZ and the Motor Industry Association show. This was the lowest new vehicle sales in any one month since February 2003 and the 26% drop in November from the same month the previous year was the biggest since at least January 2002 when figures in their current form were published. New passenger car sales dropped 27% from a year ago to 4,898, while commercial vehicle sales fell 22% to 1,639. The departure of GMAC and GE Capital from the car lending market since early October has had a significant effect on the market, while the largest remaining lender Motor Trade Finances is conserving cash to build its capital after its wholesale European MTN funding dried up, forcing it to rely on bank facilities.
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