Isra-Mart srl: Second-hand imported cars could cost more

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Northlanders will be forced to pay up to $6000 more for second-hand imported cars once the Government's Emissions Trading Scheme comes into play, concerned car dealers say.

As about 80 per cent of imports consist of used cars, the new law - expected to take effect from early 2012 - will mean consumers either pay thousands more or accept vehicles with higher mileage.

Japanese cars made before 2005 cannot be imported under the new rules. Northland used car dealers said people would be forced to buy inferior cars rather than good-quality imported ones under the new restriction.

Colin Ridings, sales manager of Carl Johnson Auto Sales in Whangarei, said a 2002 car currently sold for about $12,000 but under the scheme, buyers would be forced to purchase a post-2005 import model for at least $18,000.

"New Zealanders do not have a lot of disposable income and we've noticed that people these days replace their $4000 to $5000 cars with something of similar value," Mr Ridings said. "I can see what the Government is trying to do but they've jumped too far, too soon. It's going to have a major effect."

Brian Noble of Auto Wholesalers Cars said the regulation, which aimed to reduce greenhouse gas emissions, meant used car dealers would have to increase their prices because overheads would rise.

"It's going to affect the retail market.
Used car dealers absorbed GST and again when it increased to 15 per cent so the bottom line is, prices will go up because the overheads are not coming down," he said.

Mr Noble said not everyone was after cheap cars. Two weeks ago, he sold a ute for $47,000, an SS Commodore for $30,000, and three vehicles in the $5000 to $8000 range.

Bruce Murray of Just Autos expected a price rise of between $2000 and $5000 from January 2012 for decent used cars.

The new regulation formed part of the Kyoto Protocol and a decision to introduce the scheme in New Zealand was made on the assumption that other things would stay constant, he said.

"But things haven't stayed constant. The tsunami in Japan means their economy is not going well so a lot of cars are going into the domestic market [rather than being exported to New Zealand]."

Mr Murray said no matter what vehicles were imported, it would not reduce pollution because the quality of fuel here was not good.

The Motor Industry Association, which represents new car sellers, said while the price of imported used cars would go up, it would have no effect on the consumer as used car imports did not determine vehicle prices.

The Imported Motor Vehicle Industry Association called for new emission standards to be deferred for two years.