Confusion seen in local car market

Press, Volume CXIV, Issue 33513, 19 April 1974, Page 12

Confusion seen in local car market

t By our motoring correspondent)

Confusion appears to typify the Christchurch ear market at present: although the waiting lists for new cars arc getting longer, used-car buyers have apparently been delaying purchases, at least partly while awaiting the settlement of the petrol-price issue.

Smaller near-new second-hand cars are in fair demand, and have held their prices since before Christmas, but sales of bigger-engined vehicles have slowed, and prices have eased, dealers say.

This is in spite of the problems facing new-car buyers, many of whom are being quoted waiting times of anything from three months to nearly two years. Quite apart from import policies, overseas vehicle manufacturers are facing shortages of parts and tyres, and in some cases are not able to supply the cars which I New Zealand franchiseIholders want.

j Some popular but hard to (obtain built-up models are •still selling at well above list price when they are up to a year old, and with up to

110,000 miles "on the clock.” ■ On the local assembly scene, firms are also facing shortages of some parts, as well as shortages of labour in their assembly plants. One firm has a large number of assembled cars waiting for door-handles to be delivered from Britain before the cars can be finished and shipped to dealers. Another is delivering cars to customers i minus minor trim items, | which are fitted when they ! finally arrive. CASH SHORT Some dealers say a short-! ;age of ready cash also;! appears to be restricting! [sales, and that the shortage! is more marked than is usual even in March, after tax pay-' ments. But the restrictions; on finance company funds for hire-purchase deals which were causing problems for some dealers a few weeks ago now appear to be easing. The shortage of new cars could provide a boost for;

second-hand sales in the months ahead, dealers say. Firms importing built-up new cars say almost without exception that they have not been allowed a big enough import licence, and they are quick to emphasise that although the value of car imports was increased in the recent Budget, the increase will be more than taken up by rises in car prices and rises in car prices and freight freight costs. The number of new builtup cars imported will be no greater than last year, if as great, and the Government has refused to consider any increase in imports, they sav.

1 They are even more bitter jabout the Government’s failure to make any decision on adjusting the tariffs paid on non-British cars. The present Government was just “waffling” about the tariff question, as had the previous Government, one dealer said.

Under the present tariff arrangements. British or Commonwealth source cars for assembly in New Zealand are subject to 6! per cent duty, and those from “most favoured nation” countries—including France, Germany, Japan and Italy—pay 45 per cent.

The duty on built-up cars is 20 per cent for vehicles from British and Commonj wealth sources, and 55 per I cent for those from "most favoured nation” countries. At least one franchiseholder for built-un cars has been asking his customers to order a much sought-after under-$3OOO Japanese model in writing, with the aim of placing the written orders before the Government and seeking either more imports, or the right to assemble the model locally.