National Party Council On “Used-car Racket”

Press, Volume C, Issue 29602, 26 August 1961, Page 10

National Party Council On “Used-car Racket”

(N _Z. Press Association) WELLINGTON, August 25. The liveliest discussion at the second and final day of the meeting of the National Party’s Dominion council in Wellington today centred on a remit calling on the Government to implement a pre-election statement that a National Administration would “bust” the used-car racket. I After the words “and that the Government make the registration papers on all new vehicles not negotiable for two years, except in unusual and specified circumstances” were added, the remit was carried in a close vote of the 50-member council

Mr A. J. Yendell (Hamilton) produced two recent advertisements from a northern newspaper which offered 23 “nev? used” ears, none with more than delivery mileages recorded.

It was said that these were cars imported privately under no-remittance licences, and then sold at a considerable profit as barely used cars. The two-year resale restriction convenant signed by no-remittance buyers was said to be widely breached, and the fine for so doing was said to be only £lO. Mr E. S. F. Holland (Christchurch) objected to the term “used-car racket,” because, he said, it implied that reputable, licensed dealers were “racketeering.”

“The public are by no means blameless, and some of them are 20 times worse than any motor trader.” he said. “The only answer is

to import more new cars to meet the demand, and this, unfortunately, is economically impossible at present.” Other speakers with an expert knowledge of the motor trade said that whereas the leeway was being overcome in the 1954-57 period, it had deteriorated by 10,000 new cars a year since then, giving a cumulative lack of some 40,000 new cars today. In a discussion on another remit urging greater availability of new cars for backcountry farmers, Mr W. J. Court (Whangarei) objected to some motor dealers insisting that a farmer should buy a new tractor or truck before being supplied with a new car.

said that dealers had only a limited number of cars to allocate, and had to do their best in all the circumstances. More new cars was the answer, he said.

In spite of the claim of d city electorate delegate “that only farmers have enough money to buy expensive .American cars,” the remit was carried.

“To get my last new car I had almost to get down on my hands and knees,” a farming electorate delegate said. Mr A. Burke (Amberley)