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22 February 2011

Despite petrol prices pushing at least $2.20 per litre in most parts of the country, Turners Auctions latest sales figures show record demand for large-engine cars.

A report on second-hand car sales from the country’s largest vehicle auctioneer reveals sales of vehicles with engines over 2.0L made up almost 48 percent of total vehicle sales, in the fourth quarter of 2011. Sales increased by four percent compared with the same period in 2010 and up eight percent from the 2009 low.

Further evidence of this demand, is the increase in the average price for larger cars, up seven percent in the last year to an average of $11,185 per car, the highest price recorded since 2008.

“The data tells us people are venturing into the larger car market again. There also seems to be a seasonal trend emerging with sales of larger cars increasing in the lead up to summer. We put this down to the convenience a larger vehicle provides, with more space and power for summer pursuits and family road trips,” says Graham Roberts, Chief Executive of Turners Auctions.

In spite of the high price of fuel, Turners credit price stability for the resurgence in popularity for larger vehicles. According to AA PetrolWatch[1], from October 2011 petrol and diesel prices remained unchanged for seven weeks – the longest period without change since April 2009.

“People are becoming desensitised to the price of fuel these days. It seems the slow increase in the price of petrol has allowed consumers to accept the price,” says Graham Roberts, Chief Executive of Turners Auctions.

In line with the increase in the sales of larger vehicles, the Toyota Corolla has been knocked from top spot for the first time in two years, replaced by the Holden Commodore as the highest selling vehicle. Four out of the five most popular models are the large-engine cars, including the Ford Falcon, Subaru Legacy and the Ford Mondeo[2].

However, their popularity may be short lived as Turners predict growing unrest in the Middle East could reverse the trend.

“As long as prices remain steady we expect people to continue to buy large-engine cars but our statistics show that dramatic petrol price increases decrease the value and the number of large vehicles sold.”

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About Turners
Turners Auctions is New Zealand's leading car sales channel - accounting for eight 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

Notes ________________________________________

[1]AA Petrol Watch
[2] NB: Subaru Legacy and Ford Mondeo also available with smaller engines.

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