Election hikes used car prices
A so-called ‘‘election effect’’ is expected to result in a rise in the price of used cars, forecasts New Zealand’s biggest used vehicle dealer.
The New Zealand dollar has fallen against the yen since the election, and this is expected to lead to a slight increased in used car prices over the next quarter, says Turners Group.
‘‘Although there has been some recovery recently, the exchange rate is still less favourable,’’ it adds.
But this hasn’t impacted on used car sales - they were up 3.4 per cent to 95,554 transactions in October compared to the same month last year.
This included 12,727 public-todealer sales (usually trade-ins), 43,376 public-to-public, 18,513 dealer-to-public, 6820 dealer-todealer, and 14,118 ex-overseas registrations (imports of used cars, primarily from Japan).
In a statement, Turner says October recorded a significant increases in dealer-to-public transactions which were up 3.84 per cent over October last year, and ex-overseas registrations which were up 11.09 per cent.
With two months of the year still to go, the number of used car transaction in New Zealand has passed 952,000, which is 1.79 per cent of last year. If the trend continues, the figure will pass 1.143 million by the end of the year.
‘‘Although there has been some recovery recently, the exchange rate is still less favourable.’’
Used car prices are on the rise following the election, experts warn.