Dealer cutting price of new cars

Press, Volume CXII, Issue 32977, 25 July 1972, Page 14

Dealer cutting price of new cars

/New Zealand Press Association)

DUNEDIN, July 24.

Dunedin people are making savings of up to $2OO by buying new cars from a Dunedin used-car dealer who is selling them below list price.

The cars have only delivery mileage and are complete with a new-car warranty.

The dealer, who preferred to remain unnamed, said he had no trouble getting customers but the availability of supplies usually depended on factory production. There was nothing sinister in what he was doing. “I am just taking advantage of a market situation,” he said. Asked how he was able to obtain new cars and sell below list price, the dealer explained it this way. "I have a used car I want to sell. Let’s say it’s a Ford Escort, three years old with 25,000 miles on the clock. My price is $l9OO.

“An out-of-town new car franchise dealer buys it from me at $2lOO and in return sells me a new car at list price. "In addition to my original profit on the Ford Escort I now have an additional profit of $2OO, which allows me to reduce the price of the new car from the out-of-town franchise dealer. "Admittedly the franchise

dealer is left with a Ford Escort at above current market value but presumably he is happy to accept this situation in order to get the new car sale.” The Dunedin dealer said he thought that possibly used-car dealers in other parts of New Zealand might

I be following similar trading ■ arrangements. ! At present, he said, sup- • plies of the two most popu- ' lar six-cylinder cars were not plentiful, and at the moment I he had only one for sale. ■ This was $lOO below list ■ price and no trade in was : required.