CAR SALES INCREASE

Taranaki Daily News, 16 October 1935, Page 4

CAR SALES INCREASE

TARANAKI TRADE BRIGHT NEW CONFIDENCE INDICATED. TREND FOR LOW CONSUMPTION. PURCHASES RISE 74.6 PER CENT. An increase of 74.6 per cent, in Taranaki new motor-car sales was experienced during the past six months compared with the corresponding period of last year. Restored confidence is said to be the cause, and some manufacturers’ representatives claim the past six months to be tlie busiest period since the car “boom” of 1928-29. Registrations of new car sales made in Tafenaki for the April-September period of this year are 144 greater than for the same period last year. As far as car selling was concerned the motor trade was experiencing a rosy period, commented garage managers and ■ salesmen interviewed yesterday. Sales had increased rapidly. One firm claimed that its sales for April of this year had been greater than for the whole of the winter period of last year. The demand did not appear to be restricted to any particular make, all proven makes sharing in the increased business.

The sudden increased demand was attributable to several factors, it was said, not the least of which was the restored confidence of both the farming and business communities. Another factor was that cars purchased during the 1928-29 boom period were now in such a state mechanically that to be of any profitable use to their owners they would require considerable expenditure on reconditioning. Scarcity of available money during the past two or three i years had forced owners “to make the old bus do for a longer period than usual.” Particularly was this the case as far as business firms were concerned. These cars had reached the end of their tether and were now rather a liability than an asset to their owners. Generally the demand was for economical quality cars at moderate prices. The trend in keeping with that in America and other countries was no longer for high-powered heavy cars with- consequent heavy petrol consumption but for the low-consumption vehicle. The day of the former was over. FARMERS’ PURCHASES. ‘ While admittedly many of the purchases were being made by townspeople and business firms, no small proportion of the total purchases was being made by fanners. A remarkable feature in this connection was that in reality additional money had not been made available to the farmers, but despite this many favourable transactions, mostly on a trade-in basis, were being made with country people. “It is just a case of restored confidence,” remarked one man. “The farmer has no more \ money than before—unless he had it stowed away somewhere,” he added. The sale of cars has not been entirely in respect of new vehicles. The demand for good-conditioned second-hand cars at reasonable prices has been heavy and many sales have been effected. The large number of deals made on a tradein basis has naturally increased the number of second-hand vehicles on the market,' and in many cases dealers are holding more used cars than is customary. However, the demand for these cars is said to compare favourably with that for new vehicles, and it is only a matter of time before the position will right itself. There was an increase of 144 regi ations at New Plymouth, which for the purpose of new car registrations incorporates the Taranaki province, during the last six months compared with the corresponding period of last year. In all 839 new cars were registered this year; last year the number was 193. The highest monthly increase was 40 in April last, while in both July and August of this year 33 more cars were registered than during the same months of last year. The sales for the April-September period of 1935 represents an increase of 74.6 per cent., compared with the same period of last year. A comparison of the New Zealand registrations for the same six-monthly period discloses 1935 registrations to be 7658, and the 1934 figures 4234—an increase of 3424. Of these totals 5292 new cars were registered in the North Island and 2366 in the South Island in 1935, whereas in 1934 North Island registrations numbered 2921, compared with 1313 in the South Island.