Strong Kiwi Dollar Drives Large Car Sales

Media Release
7 August 2007

Strong Kiwi Dollar Drives Large Car Sales
Cars Drop in Price Over Winter Months

Kiwis’ love affair with large vehicles is back on track with demand for larger sized cars increasing by 13 per cent in the second quarter of 2007, according to used car sales statistics released today by Turners Auctions.

This increase means the larger category of cars (3000cc and above) now accounts for 9.6 per cent of Turners’ overall sales and is in direct contrast to the company’s first quarter sales where small cars dominated the market.

The strong Kiwi dollar has been cited as the reason for the increase reflecting steady petrol prices that make running larger cars more affordable. In contrast smaller cars have seen a drop in value as a result.

Turners General Manager Marketing Todd Hunter says the trend back to large vehicles won’t last long as the impact of increased running costs takes effect.

“The strong New Zealand dollar has made running larger cars more affordable for Kiwi motorists. However, we expect to see a sharp turnaround in this with fuel prices increasing as the Kiwi dollar drops away,” said Mr Hunter.

Turners’ analysis also shows that winter is a good time for Kiwis to purchase a used vehicle with the average price of a New Zealand new three to four year old vehicle dropping $1,000 to $1,500 in the colder months.

“There is a seasonal drop in prices due to less competition and a high supply of vehicles as rental car fleets come back into the market after the summer season,” added Mr Hunter.

The Subaru Legacy continues to be New Zealand’s top selling second-hand vehicle however for the first time the larger Honda Odyssey ‘people mover’ has made it into the top ten, ranking fifth most popular used vehicle sold.

Toyota and Nissan are the two most popular makes of cars sold and silver retains its place as the most popular colour for a second hand car.

The gap is growing in the constant battle between the Ford Falcon and Holden Commodore with the Falcon moving up three places to 4th and the Holden slipping a place to become the 8th most popular car sold.

“As the largest seller of used cars in New Zealand, Turners’ sales figures provide an accurate reflection of a vehicle's value. This information is available to all our customers so they can ensure they are paying the right price for any vehicle at auction,” said Mr Hunter.

ENDS

About Turners
Turners Auctions is New Zealand's leading car sales channel accounting for 8 per cent of all cars sold in New Zealand every year. Turners’ specialist Auctions include ex-lease, cars, trucks, plant, damaged vehicles and general goods. Turners Finance also offers finance on vehicles sold at Turners Auctions.
www.turners.co.nz

Turners Auctions 2007 Sales Data (PDF)

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