PRICE OF CARS

Otago Daily Times, Issue 26041, 3 January 1946, Page 4

PRICE OF CARS

EFFECT OF SALES TAX IMPORT QUOTAS INADEQUATE (Special) WELLINGTON. Jan. 2. The prospects for that new car are not bright for 1946 if it is assumed that at least the 80,000 motorists whose cars are 10 years old or more want to replace them urgently. The existing import licences will allow for the importation of between 7000 and 8000 British cars in 194 G. Dealers wifi be allowed to import up to 75 per cent, of their quota for 1938. when 28,000 cars were landed in New Zealand. The licences are, however, based on value, and the landed cost is likely to be double that of 1938. The British 10 horse-power car will sell at around £6OO. At present 43.25 per cent, of New Zealand’s 192,624 cars are 10 years or older, near 51 per cent, of light trucks are the same age, and 16.53 per cent, of the heavy trucks. The number of commercial vehicles likely to te imported as the position now stands is about 900. £l2O in Sales Tax Reasons for the high cost of British cars, which are selling at relatively as much in the United Kingdom as they will in New Zealand compared with pre-war rates, include the considerable increases of wages of workers in the British metal and related industries, more than a doubling in boxing charges, a 100 per cent, rise in freights, and higher insurance surcharges. These factors and others not concerned witi. the New Zealand position will almost double the 1938 landed cost. Here, the sales tax has risen 400 per cent, compared with 1938. and that increase will noW* apply to motor vehicles being landed here at twice their pre-war cost. A car which was landed in 1938 at £3OO would carry 5 per cent., or £ls, in sales tax. The same car landed here to-day at £6OO would bear £J2O sales tax. The question of import licences for American motor vehicles has still to be decided, and is dependent on the dollar position and Government policy. American vehicles formed 38 per cent of all motor vehicle imports in 1938. American vehicles are stated to be in production at a much cheaper cost than British. Aged Vehicles The urgent, need for replacement of motor vehicles and the likely demand for new ones is indicated by these “ age ” statistics from the annual report of the Transport Department:— Cars, one year old, 0.03 per cent.; two years, 0.40; three years, 0.23; four years, 1.65; five years, 3.61; six years, 10.91; seven years, 13.70; eight years. 14.89; nine years, 11.33; ten years and over, 43.25. Light trucks (not exceeding 2 tons gross weight): One year old, 0.52 per cent.; two years, 2.68; three years, 3.42; four years, 1.22; five years, 2.52;; six years, 7.23; seven years, 9.79; eight years, 10.91; nine years, 10.77; ten years and over, 50.94. Heavy trucks (over 2 tons gross weight): One year, 6.41 per cent.; two years, 5.18; three years, 12.15; four years, 2.67; five years, 4.52; six years, 10.93; seven years, 14.70; eight years. 15.91: nine years, 11.00; ten years and over. 16.53 The total number of vehicles licensed is 289,599, of which 167,660 are private cars and 24,964 business cars. Reduced importations of motor vehicles for assembly in New Zealand must mean that the industry here will be unable to absorb anything like the iabour it did prior to the war. Outside the motor vehicle plants are others who are dependent on the industry and the public use of motor vehicles—salesmen. service station proprietors and employees, tyre dealers, mechanics, and so on.