The drastic impact on New Zealand's car industry following the Japanese earthquake and tsunami is now being realised.
The event destroyed around 300,000 cars in Japan, increasing domestic demand for used vehicles and causing a major supply shortage.
On top of this, new emission standards are being introduced next year, which means most cars made before 2005 cannot be brought into New Zealand.
Imported Motor Vehicle industry Association CEO David Vinsen says the idea was to improve air quality.
“If you limit the vehicles that come into the fleet, people have to hold on to their old cars for much longer, and the fleet actually gets older and worse. So what seems on the surface to be a good solution actually has the unintended consequence of making things worse”.
Mr Vinsen says car buyers will see extraordinary price increases next year as a result of the emission standards and Japan's natural disasters.
RadioLIVE