Japanese used car

As consumers tighten their belts, used car dealers are feeling the squeeze.

Sales manager at El Cheapo Cars in Petone, Brendon Coughlan, said March had been one of the worst months in memory for the company.

Until two months ago sales had been mainly of cars in the $10,000 price bracket, he said. “Now it’s down to $5000 to $6000 and that’s down to affordability because people are now spending more a week to live.”

He said potential buyers in recent months were telling him interest rates, food inflation and rising petrol prices were holding them back from buying.

Coughlan expects a tough six to eight months for car dealers, with some of the more marginal operations likely to close.

Turners Auction is also seeing the impacts of rising costs on consumers. The company’s general manager for marketing, Todd Hunter, said Turners saw a 100 per cent rise in the number of repossessed vehicles going to auction in the year to March 2008. For the March year, 700 repossessed vehicles went under the hammer.READ MORE…