CARS AND INCOMES

Evening Post, Volume CIV, Issue 70, 20 September 1927, Page 10

CARS AND INCOMES

• WHAT IS THE LIMIT? IS £500 A YEAR ENOUGH? A KNOTTY PROBLEM

Should you have the temerity to ask, "Can a man afford to run a motor-car on an income of £500 per year or less," the answer is in the affirmative, since, as far as New Zealand is concerned at least 40,----.000 people do. If yon vary the form of your question, however, and ask, "Should a man with an income of £500 a year or less run a motor-car?" you will probably stir up a hornets' nest and start a controversy beside' which Daylight Saving or Bjble-in-Sehoqls would

pale into insignificance.

In connection with this problem as to whether a man with a limited income should or should not rejoice in the ownership of a motor-car it is . very difficult to arrive at any exact figures of the position in New Zealand, such a large number of varying factors necessitating consideration. The dictum of an English County Court Judge that nobody is justified in owning a motor"car with a salary or income below £1500 does not find much support in. the Dominion. For in this country there are approximately only 4000 persons in receipt of such a princely Bum per .annum,, whereas there are ■well over.JOOjO.OQ motor-ears.. As a matter. .of., fact,, supposing that New Zealanders are all strictly honest in the returns of their incomes that they annually make for the purposes of taxation (and, of course, one would not suggest otherwise), there are not many over 20,000 people in the Dominion with an income -of- more than £500 a year. and yet, as has been pointed out, there are well' over 100,000 motor-cars in use. In passing, it may be noted that there is at least one motor vehicle to every 10 persons in the Dominion, New Zealand having the second highest average in this respect of all the-countries in the world, the United States easily topping the list with one motor-ear to every five persons. "A'careful man with £500 a year can safely invest in' a motor-car," declared Mr. Gordon Self ridge in answer to. the Judge, and the English Automobile Association said that thousands of th'o members did not earn £500 annually. As in England, so in New Zea--land: if, for the sake of argument, 25 per cent, is deducted from the total number of motor-cars as a liberal allowance for those used exclusively for commercial or business purposes, there re main in round figures 80,000 motor-cars used for other purposes and 60,000 of these are owned by people with an income of £500 a year or less. Deduct another 20,000 as the number of cars used by farmers and one is left with 40,000 cars used solely for pleasure purposes by people whose incomes are under. £500 a year. DEALERS' VIEWS. Inquiries amongst the various motor firms in Wellington did not reveal how, the family man with a limited income managed to support wife, children, and car: they simply corroborated tho fact that he did. One dealer said that it amazed him how some people managed to 'sport' a car. "Many of them," -he said, "of course, buy a second-hand car and pay for it by instalments. What with' taxes, fees, and insurance it will probably cost them at least £30 before they go a mile, and any extensive use of the car will run into almost £2 a week. When you add the amounts of the instalments which must be paid and allow a certain sum for depreciation, the car is going to cost from £150 to £250 a year. I know that many people run a car on less than, that amount, but it all depends on the owner what tho cost is going to be. To formulate any sort Of average cost is almost impossible; the careful driver of a mechanical turn, who only uses the ear for short week-end trips, is -obviously going to spend far less than the reckless driver who goes everywhere in his car and rung it into a garage whenever the smallest thing goes wrong. ■ It is obvious that the man with an income of £400 a year who owns a car must of necessity go without many other things: whether the pleasure and other benefits he gets from owning a car counterbalance the things he goes without only the individual can decide. After all,'it is a matter of conscience and ethics whether a man canj or cannot, afford a motor-car; it is impossible to lay down the- law on the subject." .

Ik was also pointed out that in Eng- ' land it was cheaper than it is in New Zealand to own a car; the initial.cost was less and upkeep and petrol 'wore cheaper. GOOD INTENTIONS. "There is a terrible lot of nonsense talked about tho question," said another dealer. "If the averago family man buys a car for cash and writes it off (but I am afraid that very few of them do that), and only uses his car for week-end trips, say to Day's Bay, he can well afford it. Although in many caseß the buyer's original intention is to use the car only for family purposes and only for short trips, too often the original good intentions go to , the wall. Neighbours are < taken for • trips, it seems so selfish to keep tho . car for oneself, and the trips grow in length until a run as far as Masterton, . say, is no uncommon thing. Then it is that the cost is piled up and the car , becomes an extravagance." " UNWARRANTED EXTRA VA-' OANCE. A prominent social worker said that it was amazing how improvident people were. Apparently no thought was ever given to the "rainy day." As soon as £50 or bo wag saved it was not banked for old age or to help in giving the children a good start in life. On the contrary, it was spent at onco on bnying a car, provided, of course, that a.- gramophone and a wireless set had already ; been acquired. "I do not deny that the health-giving pleasure to be derived from motor-car trips has much to be said in its favour, but people are pleasure mad and thriftless, and the day of reckoning will inevitably come. The tendency is more and more to live on credit and to hope for the best, no thought being taken for th« morrow. Unwarranted extravagance is being tho ruin of what was once a happy home, and if things go on as \they are now it will be tho ruin or many more." TWO EXTREMES. # It is obvious that one. cannot generalise on the question as to whether a man,should own a motor-car if he has less than £500 a year, so much depending upon .individual circumstances. For instance, a "Post" representative came across one man whose weekly income is £8. .Three years ago he bought a sec-ond-hand car for £100,. half of which •urn was paid in cash. Twelve months later, the same car was sold for £135 the owner being a skilful enough mechanise to make this possible, the expenses of the car's upkeep during the year being approximately £60. Therefore, for the sum of £25 he had a year's enjoyment of a car, much to the benefit of his own health and that of his wife and two children. He now runs another 'car at a total cost of 23s 6d a week; hia home is all that could be desired, the children are well dressed and cared for, and provision is being regularly made for old age. "But then we waste nothing on pictures and

similar entertainments," he explained. "Our car gives us all the fun we want; we benefit by the fresh air we get from the week-end trips we make, and when it conies to the annual holiday the car saves us ponnds." At the other end of the scale is'the recent case of a man who, whilst in receipt of just over £500 a year, bought a car for £260. Within a week he had smashed it up by reckless, driving. With a big bill for damages to face, he was forced into bankruptcy three months after the purchase. THE LIGHTER SIDE. . "Fools rush in where angels fear to tread." Such was- the comment of another moderate owner of a car, when approached on this delicate subject. He did not say, however, what he meant, whether he thought he would be foolish to enter into a controversy or whether people were foolish to buy cars. He did mention something about a lot of money being sunk in the motor trade, and that he thought anybody at all who could buy a car and run it occasionally would earn the title of "blessed." On the other hand, there was the growing burden of roads. The city had turned down a big loan proposal, all because the motorist, it was averred, would not —possibly could not, said this informant —face the burden he was placing, or attempting to place, on the other fellow.

"There are cars and cars. Tou can buy a car of a sort from a ten-pound note upwards. My advise is, when you buy a car, write it off. It may figure as an' asset in your bankruptcy list, but you can take it from me that it is only an incubus in possession. It is a rich man's toy and a poor man's joy, but a good horse to the farmer."

"But, what 'screw' ought a man to have before he runs a motor?"—" Well, it depends. Life is self-sacrifice, or so tho parson said on Sunday—love and self-sacrifice. Lots' of people love a car; it is life to them, and they will sacrifice anything for it. You can run a car' indefinitely. I mean you can own one—provided you don't run into debt, or anything else. Of course, if you own a house—more likely you are trying to—and a wife and, some kids, and then also shoulder a motor-car, you are looking for trouble. But that depends, too. Most kids love a car, and lots of wives do, too. .. And it is wonderful what they will do without as long as they can go riding. I can't see much' difference myself between going riding or treading gingerly over the new. drawing-room carpet. It is all a question of what you want." "Yes, that's all right; but what about the 'screw'?"

"Oh, the 'screw." The 'screw' is there; don't you worry about that. It screws and screws, and the further you go the more it screws. It may carry you over the precipice, but what of that? You have a good time going." "And a bad time coming?" "Yes, a bad time coming. You can run a light car pretty hard for £150 a year. You may week-end or run to the beaches for considerably less. But don't count it as part of your salary. It is only the'screw.'"