New Car Sales Ban in England

New Zealand Herald, Volume LXXVII, Issue 23773, 28 September 1940, Page 8 (Supplement)

New Car Sales Ban in England

QINCE July 20 it has been impossible to buy a new car irt England without a licence. As no licences are being issued for the purchase of private cais, this means that for the private motorist it is impossible to buy a new car at all. Twelve months ago the economic effects of sucli an order would have been catastrophic. To-day the order only forbids a transaction which in any event would have become impossible in a short time.

One important result will follow —the stimulation of the used-car market, especially of 1938-1939 small-mileage models. The values of good second-hand cars must harden now that they are the only source of supply. It will not be felt immediately. At present supply exceeds demand, but as time goes on the lack of new cars will become more and more apparent. The matter is not disposed of _so simply as that. What of the existing owner who wishes to change bis car? Obviously the owner of a model that is becoming obsolete but still giving good service will think twice before Ik; trades it in for another whiHi is also used: and if he does, the greater allowance value of bis own car will lie balanced by the higher price of his new purchase. Indeed, as the increase in value will first affect the newer models, he will tend to be at a disadvantage if he waits too long. Whetl ier dealers' present stocks, such as tliev are, will bo collected and exported' is not yet certain. There are obvious problems to be faced. 'I lie car-, in many cases are not of export type. Tliev inav need modifications to springing'or the fitting of left-hand steering. There is also- the case of imported cars —models imported before the present restrictions came into force. These, if re-exported, would be in competition with later models from the same factories, which would not make their prospects of sale any easier. Hie industry is, however, fully alive to the problem and important discussions are taking place this week. If the export of dealer's stock is found to be feasible even at some private inconvenience, there will be no grumbling. —The Autocar.