Used Car Market Strengthens

Large Car Sales Increase As Used Car Market Strengthens

Sales of vehicles with 3.0 litre plus engines are on the rise for the third consecutive quarter according to figures released by Turners Auctions today.

The report on second-hand car sales from the country’s largest vehicle auctioneers reveals sales in the 3.0 litre plus category increased to 14.9% of second-hand cars sales in the July – September period.

Further evidence of this demand, is the increase in the average price for larger cars up almost $400 to an average of $12,000 per car. This time last year, the average price was under $10,000. Turners expect this figure to rise over time as demand increases.

“The data tells us people are venturing into larger car territory again. We think there’s greater optimism – people aren’t as scared of the recession. Plus relatively stable fuel prices mean buyers have more confidence they can manage the day-to-day costs of running a large car,” says Todd Hunter Turners, GM Marketing Sales.

Turners has been able to meet consumer demand as it has had greater numbers of 3.0 litre plus vehicles arriving from traditional users of large cars such as lease and rental companies and government agencies.

Todd also notes a seasonal trend emerging with sales of larger cars increasing in the lead up to the summer.

Todd describes overall sale prices in the market as ‘firming up,’ citing increased customer demand in a market that has been undersupplied for much of the year. Further evidence of this customer demand is a 22% increase in the number of car dealers purchasing at Turners since the start of 2009.

“Japanese imports have been very low in 2009, but have started to settle at around 5,000 units per month being bought into New Zealand. In mid 2008, there were over 8,000 units per month being imported into the country.”

The impact of these reduced imports especially from Japan, saw popular models such as Subaru’s Legacy and Impreza difficult to come by.

This quarter however, the Impreza has returned to the top 10 for the first time in 12 months and the Honda Civic makes its inaugural appearance on the list.

Smaller cars have retained their recently-acquired popularity with cost-conscious drivers, but this quarter, it is the larger cars are making some ground.

Despite a small increase this quarter, sales of petrol-fuelled vehicles remain under the 90% threshold for the second quarter in a row. Sales of diesel-fuelled vehicles decreased half a per cent to 10.5% after experiencing a two-year high of 11% in quarter two of 2009.

New Zealander’s love affair with the Holden Commodore continues as it remains our favourite make and model for the fifth consecutive quarter. The Toyota Corolla and Subaru Legacy continue an ongoing battle for second and third spots.

White and silver remain the top two colours as they have since 2008. This quarter they jumped to a two year high accounting for 48% of all second-hand vehicles sold.

ENDS

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