FALL IN CAR PRICES

Hokitika Guardian, 20 October 1920, Page 4

FALL IN CAR PRICES

The cabled news of last week that prices of cars are falling _in U.S.A. caused many to wonder whether they should wait in order to get a cheaper car. For the past few months the trade publications of U.S.A. have been giving prominence to tho banking question, and a favourite head-line has been “Sec you r Jianker,” Evidently a gradual squaring up of finance has been going on, it is not two months ago since some of the specialist engine builders advanced prices of engines 20 per cent. On top of this wo got the cable that certain cars are being dropped in price front 100 to 400 dollars. Hut at the same time during the recent months the exchange rate has been gradually falling again, so that the decreases in prices in some cases does not commensurate the loss of exchange. A glance at any of the U.S.A. trade publications reveals the fact that there is a tendency for a slump in our exporting business, duo to adverse rate of exchange and the. manufacturers are seriously concerned over tho question. Until Uncle Sam gives us 4 dollars 85 cents for one pound, which is its normal value, cars will not he much cheaper hero in New Zealand. At the present rate of exchange, about 3.40 dollars to the pound, -the manufacturers would have to knock off, roughly, a straig! out 25 per cent all round before the decreasing cost of the car would commensurate for tho loss of exchange alone. It isn’t much advantage for the manufacturer to decrease his cost of the car when the heads in Wall Street are increasing the cost of sending, him the money!