Will used car prices in New Zealand rise due to “election effect?”

A pre-owned car up for saleOwners of used cars in New Zealand may have a good reason to sell their vehicles, as prices of second-hand automobiles would increase due to the “election effect.”

The increase would occur as sales of pre-owned cars would likely reach 1.2 million units for 2017, according to data from the New Zealand Transport Agency (NZTA). A weaker currency against the yen serves as one factor for a projected price growth.

New Zealand Dollar

Since the election, the foreign exchange rate against the yen remains unattractive even if the New Zealand dollar has recovered recently. This would result in higher used car prices over the next three months. If your old car is beyond repair, you may still sell it to companies that offer cash for cars in Christchurch or Auckland.

The NZTA data showed that the number of second-hand car transactions has exceeded 857,000 units for the first nine months of 2017. The figure is already higher than the total of 843,940 used cars in the same period last year when the total number of sales reached more than 1.12 million.

Used Car Sales

In September alone, there were almost 94,800 pre-owned cars that changed possession. More than 45 per cent of these vehicles went to a new owner through public-to-public transactions, which involve private transactions between buyers and sellers.

The dealer-to-public type of transaction ranked next with 18,060 deals during the month, while ex-overseas registrations comprised 13,645 units of imported cars that mainly arrive from Japan. On the other hand, public-to-dealer transactions accounted for 13,074 sales. Dealer-to-dealer transactions consisted of the least number of sales with 7,019 used cars.

Conclusion

Car owners should take advantage of the expected growth of used car prices, especially if repairs could no longer salvage their vehicles. When do you plan to sell your old car?