The Car Covenant

Press, Volume CIII, Issue 30569, 12 October 1964, Page 12

The Car Covenant

Concerned at the prevalence of trading in nearly new cars at prices above those for new cars, the Government is expected to introduce legislation, or regulations, restricting the re-sale of new cars within twelve months. If the restrictions succeed in ending or reducing the practice they will help to ensure that new cars are sold only to genuine buyers. They are likely to be expensive to administer and difficult to police, and should be removed if they are found ineffective or when they are no longer required. The need for such restrictions reflects the continued high demand for motor-cars, even after last year’s record imports. In the present state of the balance of payments New Zealand certainly cannot afford to import cars on last year’s scale: but if imports are reduced the “ rackets ” in the car business will increase—whatever restrictions are imposed. The only sure way to stop the rackets is to put up the price of new cars. The Government may yet have to heed the advice of the Monetary and Economic Council, which has recommended, among other things, a tax on foreign exchange and higher sales taxes on cars.