CHEAPER MOTOR CARS.

Otago Daily Times, Issue 19550, 5 August 1925, Page 10

CHEAPER MOTOR CARS.

SLIGHT FALL IN VALUES. DUE TO BETTER EXCHANGE RATE (From Ooa Own Correspondent.) AUCKLAND, August 4. The slight movement in motor car values in New Zealand was discussed by members of the local motor trade yesterday. It was pointed out that with (ho exception of one or two models, the small reductions which have taken place in the price of American cars in New Zealand are solely due to the recent improvement in the exchange rate with the United States. One Auckland agent, who is on the point of announcing a reduction in the price, of his car, explained that if the vehicle were priced at. £490, say last December, when tho pound sterling was worth 4.72 dollars, it would bo incumbent on the dealer to reduce the price by £lO now that tho pound was worth 4.55 ' dollars. Reductions from this cause had already been effected by a number of local agents, and others were about to follow suit. It is pointed out that in every case reductions are local and are not due to any load given in the country of manufacture. Values in America are fairly steady and tho new 1926 price-lists, which me only just being received in New Zealand reveal tho fact that next year’s prices will show but infinitesimal reductions, amounting in ease of several cars to a matter of £5. Moreover, the now lists will not take effect until the arrival of tho now season’s cars towards the end of the year. Touching on the average price of cars dealers drew a comparison between pre-war and presentday values, showing that never have car prices been so favourable to the purchasing public as they are to-day. Specific cases show that this year’s prices are practically in every case lower than they wore in 1914, a circumstance which they consider is unique in the commercial world, in view of the high price level still maintained by materials and labour.