Resale Restriction On Cars May Continue

Press, Volume CIV, Issue 30900, 5 November 1965, Page 1

Resale Restriction On Cars May Continue

(From Our Own Reporter)

WELLINGTON, Nov. 4.

The 12-month resale covenant on new cars and station waggons, due for review after an initial year’s trial, which ends next Tuesday, will be continued in the meantime —and probably indefinitely.

No formal decision on the continuation of the scheme has yet been made and the Minister of Customs (Mr Shelton) is expected to consult with the motor trade and with his department before making recommendations to the Cabinet.

In the absence of any < significant complaints ' over the scheme re- ; cently, the Government is likely to continue the I covenant. ‘ The covenant requires buy- ] ers to undertake not to dis- 1 pose of a new vehicle within 1 a year of purchase without 1 first offering it to the original

dealer at a depreciated price of £l2 for every 100 miles, with a maximum of £2OO and a minimum of £75. Mr Shelton said today he had received no reports of court actions for breaches of the covenants and believed they had proved useful in helping to suppress the payment of premiums on nearnew cars. The scheme would have

been even more valuable if the covenant period had originally been fixed at two years, he said. But there was no present thought of making the resale period two years. Cars imported on no-remit-tance overseas funds may not be sold within a year without approval from the Customs Department. For those imported dutyfree as passenger’s effects, having been owned or at least a year abroad, there is a two year resale restriction, such cars may be' sold within two years but only if the original importer pays the duty which would originally have been assessed on them.