2 Cheap Cars has reported that its business performance for the four months ending July 31 2024, was negatively affected by the prolonged economic downturn.
The company expects the recessionary environment to continue for the rest of the financial year, but remains committed to achieving a result in line with its stable year-on-year profit guidance.
Inflation, exchange rate volatility, and the cost of living crisis were cited as factors impacting pricing and finance and insurance penetration rates.
Furthermore, a 2CC site in East Tamaki had to be shut down due to major health and safety concerns related to a neighbouring property's landslide risk.
The closure is expected to have an impact on trading until the site can reopen.
2 Cheap Cars will provide a further trading update at the annual shareholder meeting in September.
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