“NO FALL IN USED CAR PRICES FOR TWO YEARS”

Gisborne Herald, Volume LXXV, Issue 22663, 14 June 1948, Page 6

“NO FALL IN USED CAR PRICES FOR TWO YEARS”

(P.A.) WELLINGTON. June 11. Used car dealers in Wellington believe that the prices of all used cars will stay up tor at least two years. A few predict a fall in the prices of small and average-sized English cars but opinion is unanimous that American prices will either stay at the present high level or will go yet higher. However, one old-established dealer issued a warning on the subject: "No matter how new a car is, if it appears to be a bargain to the dealer’s disadvantage. or if the dealer offers an over attractive trade-in for your old car, there is bound to be something wrong with the one he is trying to get rid of” Temporary Recession With the introduction of petrol rationing through the retailers there was a large number of cars sold as many people considered It not worth the trouble of driving from garage to garage in search of a single gallon of petrol, said one dealer. This brought a temporary recession in prices 'lit with the adoption of the coupon system, the petrol supply became definite, and prices soon regained the little they had lost. It was pointed out that while prices might stay at their present levei they would, in effect, be rising higher because the cars themselves would be getting older. All pre-war cars—most of them more than 10 years old —had reached the stage where they were deteriorating rapidly and cars of popular makes that had done less than 30,000 miles were becoming harder and harder to obtain. Higher Prices in Summer Prices for the larger cars were seasonal according to another man in the business. With the present housing shortage and the consequent shortages ot garages, many people bought a car for the summer months and used it for their holidays, to sell it again with the approach of winter, as they have nowhere to house it. This would effect the prices of late pre-war American models as much as £io0 —a car on display priced at £750 was identical with a model sold shortly before last Christmas for £BSO.

All dealers agree about the future prices of post-war cars- They will, they say, continue to bring prices in excess of the list price.