MOTOR CAR SALES

Poverty Bay Herald, Volume LXIII, Issue 19130, 26 September 1936, Page 4

MOTOR CAR SALES

RIVALLING BOOM YEAR GISBORNE MARKET BRIGHT REPLACEMENTS FEATURED Figures relating to car sales this year in Gisborne indicate that the total for 1936 will rival that of 1929, the boom year of the trade, according to statistics covering the whole of New Zealand. In the eight months of 1936 now completed, 294 cars have been disposed of by motor agencies in this, district, this figure comparing with' 209 for the Sirst eight months of 1929, the averages per month being 36.75 in the case of 1936, and 37.37 in the boom year. A feature of the trade this year has been the steady volume of replacements, business linns having heeii 'busy replacing the machines used for their respective purposes. This class of trade is becoming a staple of the motor firms' business, and the new boom has been contributed to materially by the needs oi motor transport as applied to other industries. Compared with the replacement trade, the number of new cars sold to private individuals is small, though there is a growing demand from private •buyers who have not been, car-owners in the past. NEW CABS FOB OLD How important is the replacement business, and how sound the prospects are for a continued large turnover in this section, may be judged from a survey of the sales of past years. There are no fewer than 2022 cars in the district which have been is use for five years or more, and it is anticipated that as long as moderate prosperity continues, replacements will proceed at the rat© of about 4CO per year. Discussing this phase of his business with a pressman to-day Mr. G. A. Nicholls, of O'rmoiids Motors, Limited', quoted the sales figures of the past 10 years to show not only the prospect of a regular replacement demand, but also the effects of the slump on the motor trade in the district. The- figures quoted were as under:

Year Cars sold 1926 297 1927 342 1928 431 1929 593 1930 " 34y 1931 • H 4 * 1932 93 1933 65 1934 21c 1935 322 1936 (eight months ... 294 Total 3134 * An analysis of the'figures will indicate that more than 700 cars sold in the period reviewed are now over eight years old; that 1100 are over seven years, 1000 over six years, and 2022 over five years old. Taking the average life of a car used for general purposes at 10 years, it is evident that pure exhaustion of the older ones will create a replacement trade calling for an average of 400 cars per year in normal times, without any allowance for an expansion of the motor sales field. ' ■ A large proportion of the business done this year has been with mercantile firms which have delayed the replacement of their cars for as long as possible, but are now forced to provide new cars for staff use. The statistics relating to the first eight months of each of the past 10 years, and also of 1930, provides interesting comparisons, these being quoted by Mr. Nicholls as under: —

The comparisons of figures of commercial vehicle sales have a similar general trend, but it cannot yet be said that the recovery in this section of the market is complete. In 1929, 108 commercial vehicles were sold in the Gisborne district, and figures for ensuing years were: —1930, 78; 1931, 30; 1932, 17; 1933.. 19; 1934, 45; 1935, 72; and 1936 (eight months), 58; total for eight years, 427. If the average of sales for the first eight months is maintained to the end of December, the total sales for 1936 will be close to 90, which will exceed the best of the respective years since 1929.

if ear. 8 months x\verage sales. per month 192(5 . 219 27.37 J 927 . 193 24.12 1928 . 210 26.53 1920 . 299 37.37 1930 .. 250 31.25 1931 . 94 11.75 1932 . 59 7.37 1933 .. 41 5.01 1934 .. 117 14.62 1935 . 196 24.5 1936 .. 294 36.75