Second-hand Car

Press, Volume CVI, Issue 31135, 11 August 1966, Page 16

Second-hand Car

Prices Sir, —Monday’s issue reported that two charges had been preferred against a leading car sales firm in Hamilton. One of these was selling a car at an unreasonably high price. I do not see why the charge is not brought against car sales firms in Christchurch. Advertisements clearly illustrate that they are selling second-hand cars at prices far above their new list price. This, of course, must be unreasonable because the car is not in as good condition as when new and therefore a price exceeding the list price cannot reasonably be asked for. The maximum penalty for this charge is £5OOO. I wonder how many motorvehicle dealers think this is unreasonable. —Yours, etc., FIXED RACKET. August 4, 1966. [Mr A. V. Church, district officer of the Department of Industries and Commerce, replies: "As the case to which the correspondent refers is now before the court it would not be proper for the department to comment specifically

;on it. However, where evidence can be produced to show that a dealer, by charging an unreasonably high price on the sale of a motor vehicle has achieved more than a fair and reasonable rate of commercial profit, within the meaning of Section 23, Control of Prices Act, proceedings for profiteering may be taken against him by the Department of Industries and Commerce or the Police Department, or by the buyer himself.”]