At least three Dunedin car sales yards have closed in recent weeks or are about to close, taking to nine or 10 the number to have closed or been involved in changes in Dunedin in the past year.
Southern Motor Court last week relocated cars from one of its two yards, and this week Andy Ruddenklau Vehicles also closed its Andersons Bay Rd yard, while the Otago Motor Home Centre planned to wind up business at the end of this month.
Mr Ruddenklau declined to comment but it was understood his decision was based on lifestyle reasons, while the manager of the Otago Motor Home Centre forwarded inquiries to owner Andrew Simms, who did not return calls.
Southern Motor Court chief executive Tony Sycamore said it had vacated the Southern European site at 277 Andersons Bay Rd and shifted vehicles to 300 Andersons Bay Rd.
"We believe in the current climate it is a smart business decision and it also means the brands are housed beside the workshop."
He declined to say what was going to happen to the now vacant showroom.
Also in recent months, Southern Value closed its doors and sources have told the Otago Daily Times the volume of cars on some yards was half that of a year ago.
The South Island chairman of Independent Motor Vehicle Dealers Association, Lloyd Wilson, of Dunedin, said between six and seven dealers had closed in the city in the past year, far fewer than in other cities.
There had been some "shuffling of the cards", where yards had merged and other such changes, but Mr Wilson said Dunedin appeared more insulated from downturns because there were not the same extremes as in northern centres.
Business had got tough for car dealers.
Demand was slowing because of weak consumer confidence but also a weak Japanese yen meant car buyers were paying twice the price they did a year or so ago.
Retail car prices were also rising because of new emission controls on imported vehicles imposed by the previous government.
Mr Wilson said this effectively meant they could not import any vehicle older than 2001 or diesel vehicle older than 2004.
"A vehicle you would get $2000 for is, in the case of a van, now worth $7000 to $8000 because there is no competition.
"To have a van now is a valuable asset."
Other used vehicles had increased in price $2000 to $3000 in recent months, but they were getting older, with high mileage.
Association chief executive David Vinsen said four years ago 175,000 vehicles were imported, last year there were 88,000 and this year he expected just 40,000 to be imported.
Although car yards were closing, Mr Vinsen said businesses established to service the imported vehicle market, such as transport and inspection companies, were also suffering.
He had no data on business closures but said triggers such as a slowdown in sales, the end of a lease, people reaching retirement age or children leaving home, were prompting some retailers to re-evaluate their career.
There was another major shift occurring in the industry, with high property rents forcing all but those retailing prestigious new car brands off high profile sites.
