9 May 2011

Second hand car supply from Japan likely to tighten

7:35 am on 9 May 2011

Listed car auctioneer Turners Auctions says prices for second hand cars from Japan are set to rise later this year.

Turners' chief operating manager, Todd Hunter, says importers have taken advantage of a drop in demand for used cars in Japan following the earthquake and tsunami in March.

In April, more than 10,000 used cars were imported from Japan, a 50% rise on the month before.

Buyers were also influenced by a high New Zealand dollar, Mr Hunter says.

However he says the disruption caused by the earthquake to car manufacturing in Japan means Japanese owners are keeping their cars for longer, and fewer used cars are becoming available for sale.

The Imported Motor Vehicle Industry Association says it expects about 10% fewer used cars to be imported from Japan this year as a result of the March distress.

About 93,000 used cars were imported from Japan last year, making up 95% of all used car imports.