Deposits hurt car men

Press, 4 October 1977, Page 3

Deposits hurt car men

Motor vehicle dealers again voiced their opposition to high deposits on used cars at the opening of the retail motor industry conference in Christchurch yesterday. The conference, which includes the Motor Trade Association and the Motor Vehicle Dealers’ Institute, began with a meeting of the M.V.D.I. motor-cycle division, followed in the afternoon by the annual meeting of the full institute. According to the institute’s executive director (Mr C. F. Stone), the general feeling at that meeting was one of strong protest at the Government’s failure to lighten restrictive regulations governing deposits on used cars. Existing regulations require a 60 per cent deposit on all used cars and on new and used motor-cycles, and full payment within a year. Full price must ba paid in

cash for all new cars, apart from some types of commercial vehicles. The institute has already made submissions to the Government on the vehicle deposit regulations, and is awaiting a reply. i ‘‘We are concerned that the Government does not recognise the contribution that our members make to the economy of New Zealand,” said Mr Stone. “Unfortunately, both the public and the Government tend to look at the glossy i showroom frontages of a dealer, without looking beyond them to see how many people are employed there. If the vehicle dealerships are put in jeopardy, you are los-1 ihg the training of a lot of, qualified people.” “We are a responsible industry’* he said. “We recog- i nise that New Zealand can-! not afford to import morel than a certain number of' new cars, i

“But the used cars are already here, sitting on the lots. And they are the lifeblood of the motor vehicle industry.” A Hamilton man, Mr H. S. Dyke, was elected president of the institute, at the annual meeting, succeeding Mr D. N. Cresswell. Mr Dyke is chairman of directors of Wanganui Motors, Ltd Fairview Motors, Ltd (Hamilton), and N.Z. Express and Taranaki Freighters (Wanganui). i He joined Mr Stone in condemning the high deposit regulations, saying that the used-car buyer was the “family man,” rather than ■industry or commerce. 1 “The most a family man can now aspire to is to upgrade his car for another used car.” i Mr Cresswell said, similar 'opinions had.been expressed I at the motor-cycle division 'meeting, earlier in the day. i’ Nearly two-thirds of all'

■ motor-cycles were sold to • farmers, who gained a tax: ■ rebate on them, he said. The city dealers were in a difficult situation, because I _ the remaining third were' 1 sold to city dwellers — ’ mostly young people. They • had difficulty raising the 60 per cent deposit required, , and for most it was their . first vehicle, so they did not ; have the advantage of a . trade-in. ! The senior vice-president 1 of the institute. is now Mr M. Fowler, who is. managing director of the Todd Motors ■ dealership in Tauranga, and ’ who was junior vice-presi- ! dent of the institute last year. Mr J. W. Hawke, of Ini vercargill, was elected as . this year’s junior vice-presi- ■ dent. He is managing director of Viking Car Sales, Ltd, and a partner in Graham Dukes Yamaha, Ltd. He was the first president of; the Southland branch of the' M.V.D.I.