Motor trade 'at lowest ebb since 1929’

Press, 1 September 1977, Page 10

Motor trade 'at lowest ebb since 1929’

FA Wellington Motor-vehicle industry people in the United States and Britain cannot believe that the New Zealand Government has such ccntrol over the ability of people to buy cars, says the executive director of the Motor-Vehicle Dealers’ Institute (Mr C. F. Stone). “The New Zealand motor trade, at franchise level, is at its lowest ebb

since 1929,“ be said, commenting on Motor-Vehicle Dealers’ Institute approaches to the Government to ease the problem.

“Nowhere else in the w’orid are motorists prohibited from buying new cars unless they have the total cash,” said Mr Stone, who has iust returned from six weeks overseas

studying the motor industry. He said he believed there were 10 franchise dealers who had closed their doors or were about to, and the. position was worsening. “Wage-earners find they cannot afford hire-pur-chase payments on a used car with repayments spread over only 12 months. "The present average cost of a used car in a franchise dealer’s showroom is now $4905. an increase of $1149 in 10 months, thus tying up an increasing amount of working capital,” said Mr Stone. The Minister of Trade and Industry (Mr AdamsSchneider) said, after meeting an institute dele-

gation, that the Government might be asked to consider reducing hirepurchase deposits on used cars if the decline in registration of new cars continued.

The Government’s target had been 65,000 new-car registrations during the •ear, but the institute had told him that if the reduction during July continued for the whole year that target would not be met. Mr Adams-Schneider said he told the institute that if the July trend continued this month he would discuss with the Government the possibility of reducing the 60 per cent deposit on used cars and extending the present 12-month repay, ment period. ■