Turners Auctions Ltd said a slump in the market for used cars continued in 2009 and its business is well positioned for a recovery when it occurs.Chairman Michael Dossor told shareholders at the annual meeting that the New Zealand used vehicle market decl
Turners Auctions Ltd said a slump in the market for used cars continued in 2009 and its business is well positioned for a recovery when it occurs.
Chairman Michael Dossor told shareholders at the annual meeting that the New Zealand used vehicle market declined a further 5 percent in 2009 off the back of the 9 percent decline in 2008.
That translated into 140,000 fewer used vehicles changing hands per annum in the market over this two-year period.
"These declines are unlike any seen before, and have resulted in large numbers of used car dealers going out of business and put related businesses under considerable pressure," he said.
Despite the declines in the used vehicle markets, auction revenues remained steady at $36.6 million.
A reduction in sales of Japanese imports was offset by continued growth in sales of repossessed vehicles, government fleet vehicles, lease and rental company vehicles.
Mr Dossor said 2010 would still be challenging for the business as there was still a high degree of uncertainty in many of the markets Turners operate in across New Zealand.
The business remained well positioned for growth and to take advantage of a recovery when it occurs.
