Price for used cars on the rise as supply comes under pressure

Prices for used cars are on the rise, according to quarterly figures released today by Turners Auctions.

Sales figures from the country’s largest vehicle auction house reveal average sale prices have risen for vehicles of all engine sizes. The trend is most pronounced in mid-sized engine vehicles, where figures have bucked a consistent downward trend and prices are now at their strongest in 12 months.

Surprisingly, as petrol prices continue to climb, the average price for vehicles over 3.0 litres has increased. Consumers are paying more now, on average, for vehicles with bigger engines than they did six months ago.

"Over the last four months we have seen a steady rise in the sale price of used cars. This trend is a result of supply pressure, stock levels were tight at the beginning of the year and demand has increased this quarter as people begin to replace some of the 750 vehicles lost in the Christchurch earthquake," says Turners Auctions COO Todd Hunter.

Turners Auctions expect the upward trend to continue as the impact of the Japanese earthquake filters through.

"This data does not yet show the impact of the Japanese earthquake. We expect prices for used cars to remain strong in the second half of the year as supply is put under pressure by the reduction in the number of Japanese imports available to the New Zealand market," says Hunter.

Japanese vehicles continued to dominate market share in the first quarter of 2011. However Korean manufacturer Hyundai is now back in the top ten most popular brands and well placed to fill any gaps left in the market by Japanese manufacturers.

"The market share of Hyundai is now three times what it was 12 months ago. We have seen a significant rise in Hyundai new car sales and an increased presence in rental car and government fleets. Our sales figures are evidence of the increased popularity of the brand. We believe that we will see more Hyundai vehicles go under the hammer in the coming quarter," says Hunter.