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Car yards getting closed in New Zealand

Imports of new and used vehicles in New Zealand fell 55% in April compared to the same month a year earlier.

This translates to a drop from 19,344 units to 8,606. Media reported several reasons, not just recession.

They in clued tighter New Zealand regulations on emissions that effectively stop any vehicle built before 1992.

There also great competition at Japanese auto auctions. The fall in the New Zealand dollar is also a factor.

What does this mean?

Independent Motor Vehicle Dealers Association boss Dave Vinsen says New Zealand dealers have begun to recycle cars already in the country. Some are being sold for the third or fourth time around.

Mr. Vinsen said a number of used car dealers had shut up shop but this was often due to retirement or other life factors, whereby they have decided not to carry on in toughening conditions. Others, he said have simply adapted to the changed market environment.