USED CAR PRICES

Press, Volume LXXXVIII, Issue 26869, 23 October 1952, Page 13

USED CAR PRICES

TREND IN LAST YEAR EXAMPLES QUOTED BY COMPANY CHAIRMAN “Although our prophecy that the year just closed would be a successful one has been fulfilled, exchange restrictions imposed by the Government early this year had the effect of converting a sellers’ market almost to a buyers’ market, with the result that used car prices showed a decided decline,” said the chairman of the South Island Finance Corporation, Ltd. (Mr D. W. Bain) at the annual meeting yesterday. *'l would quote as ‘examples the current value of an Austin 10, 1936 model, which last year was approximately £375, and which now is about £325, carrying an advance of £162 10s against £lB7 a year ago. A Morris 8, 1936 model, which sold at about £350 early in 1951, is now bringing about £2BO, with an advance of about £l4O as against an advance of £175 this time last year. In the case of a Chevrolet, 1936, the average price today can be quoted at £460 as against £650 a year ago, and the average advance at £230 against £325. “The downward trend in used vehicle or ices is illustrated bv the fact that the average advance a vehicle at balance date this year was £l5B, compared with £166 a year ago. “The fall In the prices of used cars has been due. not so much to the scarcity of money, as to buying resistance in anticipation of a very large inflow of new cars, and perhaps of some recession in economic conditions. Prices may well Nave slipped more, but for rising costs of new vehicles and restrictions on imports because of limited overseas exchange.

“There is now a much sounder relation between the prices of new and used vehicles, and the artificial levels prevailing when good used vehicles had a scarcity value have substantially disappeared, at least for vehicles from the United Kingdom,” said Mr Bain

CAPITAL NEEDS OF N.Z. COMMENT BY “THE TIMES” New Zealand’s capital imports, partly on Government and partly on private account, must continue at a high level if the growing population is to be adequately equipped and the country’s great potentialities more fully developed, says the annual financial and commercial review of “The Times.” The review is the first since 1939. Over-ordering of imports, says the review, has been due partly to importers’ lack of experience on a free market and possibly by the desire to obtain goods before New Zealand was forced to follow the restrictive action of other countries. To a great extent these influences are not expected to persist, but a more inflexible demand, amounting to a quarter of total imports, is due to the capital requirements of a population growing at the rate of nearly 50,000 a year. Capital inyestment from abroad would greatly ease the strain upon current income, and, unless such funds are forthcoming, it is thought that exchange restrictions must be maintained to enable the overall balance of payments to be achieved, as promised by New Zealand early this year, although reduced earnings from wool and skins have placed the target of a £25,000,000 surplus with the non-sterling area out of reach. Repayment of advances and the. drain of funds for import payments has reduced the volume of money outstanding for the first time for many years. Rising bond yields have also indicated the general financial stringency, and although the Government, by announcing its intention to keep off the market and by reinstating capital issues control, has attempted to limit the movement, it has had to allow

an increase in local authorities’ maximum borrowing rates. • Export prospects provide support for a better balance of trade. Recent wool sales have maintained a level which, although not comparable with 1951, is high by earlier standards. Prices of major exports to the United Kingdom, dairy produce and meat, have been adjusted satisfactorily. Very favourable seasonal conditions in 1951-52 and the inducement to increase flocks, -while wool prices were high last year, have greatly enhanced the outlook for meat shipments, and dairy production has been outstanding.

COMPANY -NEWS CAPITAL OF PUTARURU i TIMBER INCREASED (New Zealand Press Association) WELLINGTON, October 22. The Putaruru Timber Company announces a capital increase from £165,000 to £300,000. Of the new shares 80,000 are now being issued and 70,000 of these (25,000 preference and 45,000 ordinary) are to be offered to preference shareholders on the register on November 1. The remainder will be held unissued meanwhile. HADFIELDS STEEL Net profit of Hadfields Steel Works, LtdSydney, increased by £3778 to reach a new peak of £40,728 for the year ended June 30. The result was struck after the provision of £7900 more for taxation at £39,000 and £lOOO more for depreciation at £13,000. Dividend of 8 per cent., which compares with 8 per cent., plus a bonus of 2 per in the Previous year, requires £17,010, and carry-forward is increased from £25,485 to £49.203. The directors state that although the profit is a record, they deem it prudent to continue their conservative policy, and an 8 per cent, dividend has accordingly been recommended. In view of the present financial circumstances, they state, it is necessary to utilise surplus profits on capital improvements which are essential to enable the company to take better advantage of the market. The demand for the company’s products was continuing, and gave every indication of another successful year. The company’s balance-sheet shows paid at 41256,519, , compared with £172,144 a year before. A one-for-two issue at par was made last January. Bank ? ve r. dr . a ?L has been reduced from £46,164 to i. 21.121, and shareholders’ funds have risen from £249,679 to £354,227. Current 5??nln„? ose by m ° re than £lOO,OOO to £304,091.

United Building.—Net profit of the United Building Investment Society of Auckland declined by £328 to £8226 for the year ended September 30. Dividend has been maintained at 6 per cent, and requires £5906. General reserve will be increased by £2500 to £53,500, and the balance carried forward is £2585 against £2765. Mortgages, less borrowing mehibers’ sinking funds, amount to £208,241, against £208,588. Shareholders’ funds have increased by £lB2B to £157,472.—(P.A.) Sharland and Co.—Net profit rose by £6lBO to £61,213 for Sharland and Co., Ltd., in the year ended August 31. A sum of £10,149 is brought in from last year, z and £34,500 is provided for taxation. General reserve is brought up to £72,000 with the addition of £12,000, and a 3 per cent, interim dividend took £4860. From, the balance of £20,002, the directors propose a final 2 per cent, dividend plus a 4 per cent, bonus, which require £9720. Carry-forward is £10,282. Bank overdraft has risen from £79,122 last year to £124,059, and stocks have increased from £230,696 to £292,873. Tin and Lead Prices.—Latest quotations from London are:—Tin: £954 5s spot, £943 5s forward. Lead: £B5 12s 6d spot, and forward. Wilcox, Mofflin.—Wilcox, Mofflin, Ltd., wool, skin, and hide merchants, Sydney, is paying a dividend of 5 per cent, for the year to June 30 on October 16. The interim dividend was passed and this year’s full payment compares with 10 per cent, in 1951 and 12$ per cent, in 1950. Net profit fell from £71,091 to £40,123, after taxation, and allowing £14,228 for depreciation. The reduced dividend absorbs £27,500, and £lO,OOO has been placed to general reserve, against £15,124 last year. Carry-forward is £17,003, against £14,380 brought in. Leyland O’Brien.—A dividend of Is a share, plus a bonus of 6d a share, is payable on November 27, ex November 20.—(P.A.) Farmers’ Trading.—The Farmers’ Trading Company, Ltd., is paying half-yearly dividends on A, B, and C preference shares on December 1. Payment on the A and B shares is at the rate of 7 per cent, per annum, less 20 per cent, under the Interest Adjustment Act On the C shares the rate is 5 per cent, per annum.— (P.A.)