TRADING IN FOR NEW MODEL

Hawke's Bay Tribune, Volume XIX, Issue 64, 2 March 1929, Page 13

TRADING IN FOR NEW MODEL

IS PRACTICE FOREDOOMED

VIEWS OF MANUFACTURERS

(By “

"Sparks”)

Is the policy of producing the "yearly model” that has played such a big part in the automobile industry during the last decade, foredoomed? Indications are that it is at least possible—if not probable. A year or two back it was the vogue for those who could finance it, to "trade in” their automobile for a new model, or new make every year, and the fashion was encouraged and fostered by the trade; but from indications that system of purchasing and merchandising cars is losing ground.

Latest figures from U.S.A., where the custom had its birth, show that the first car owners now on an average. keep their cars 2'i years. This longer use of cars is fraught with complications to the manufacturers with big outputs of medium and low priced vehicles, but that new models each year are not essential to profitable trading has been demonstrated in striking manner by Rolls-Royce and Ford. The automobile industry is one of the world’s largest—and strange to say it has during the past ten years been built on a foundation of wastefulness as far as passenger cars are concerned. Unquestionably the modern automobile is a more efficient and durable vehicle than it was in pre-war days, yet the yearly model has been the cause of large numbers of motorists trading in their cars after only 10 to 15 per cent, of the road life of the vehicles had been utilised, and for this small percentage of service they were prepared to pay—and did pay—anything from 40 to 50 per cent of the value of their car for the pleasure of driving a new model or new make of car- -maybe giving no better _ service than the vehicle traded in. SALES OF USED CARS. This practice has grown to such an extent in America, that it is estimated that 5,000,000 used cars are sold annually; whilst 3,150,000 second-hand cars are traded in before the year’s 3.500,000 new automobiles are marketed. It is stated that three-fifths of the twenty odd million cars on U.S.A, roads were used cars when purchased. Less than 10 per cent, of new cars are now sold without a used car being traded in as part payment, and in most instances this involves a second “trade in” of

another used car before the first used car is placed. This means the sale of two used cars before the transaction of selling a new car is completed. THE BETTER INVESTMENT. The trading in of year-old cars, brought into being a class of buyer who appreciated the fact that purchasing a well-kept second-hand car with 85 to 90 per cent, of its potential life still before it, at 50 to 60 per cent, of its value was a worthwhile proposition. Many experienced motorists prefer buying their cars in this manner, and where good judgment is exercised, they certainly obtain excellent value. Thev claim that a used car in good condition can , be a better investment than a new car and there are sound argumetts in favour of this contention —as lo'nr as thev buy right. The purchasing of third or fourth-hand cars is, of course, a different proposition, for only expert examination can determine their vijlue. FIVE YEARS SERVICE. The present day car is so well constructed that one can safely say that its minimum life is anything from 5 years upwards, according to its price, the attention the car receives and the manner in which it is driven. One leading American manufacturer has already started propaganda that purchasers of his ears should use them for at last 5 rears; and th© probability is that other makers will follow this lead. If it became general, and the onali+r efficiency and durability of the modern car warrants it—probably it would be the ultimate solution of one of the greatest problems that the, ' rotomobile industry has to contend with.