Elec­tion hikes used car prices

Piako Post - - OUT & ABOUT - MO­TOR­ING

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.

-Rob Maet­zig

‘‘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.

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