The incoming National-led government has promised to repeal the discount aimed at offsetting carbon emissions by December 31.
The incentive saw those registering a vehicle in New Zealand for the first time either get a fee or a rebate depending on the vehicle’s CO2 emissions.
This meant buyers of zero-emission or low-emission vehicles would get discounts while those buying high-emission vehicles would have to pay a fee at the time of registration.
Auto Court director Nelson Cottle expected high-emission vehicles would become "more desirable than they are currently".
"There’s positives and negatives.
"If you want to buy a diesel ute, it’s better, but if you want to buy an EV [electric vehicle], you’re worse off."
The scheme was intended to be cost neutral with high-emission fees covering the cost of discounts.
But in reality, the discounts were costing taxpayers $281 million to keep afloat.
Eight months ago, Labour introduced harsher penalties and smaller discounts as an attempt to gradually break even on the costs.
Mr Cottle said the "up and down of the penalties and rebates has an effect on the market value of cars".
"We’re having to constantly readjust our buying behaviour."
Auto Court owner and Mr Cottle’s father, Neil, said it would be "difficult to assess" the effects the change would have on his business.
"For a lot of people, I think the rebates have enticed them to make decisions."
He advised that those interested in buying an EV or hybrid vehicle to "get cracking".
"That’s really all it is because it doesn’t appear anything can happen that’s going to make them any less than they are now," Mr Cottle said.
"It only appears that they’ll be more expensive."
