MOTOR TRADE FIGHTS NEW CAR RACKET

Rotorua Morning Post, Issue 5319, 4 February 1947, Page 2

MOTOR TRADE FIGHTS NEW CAR RACKET

PROFITEBRS FIND NEW METHOD TO BREAK COVENANT. LON-DON. Car profiteers are .using a new method t0 beat the restrictions which prevent a new car from being soldvvithin six months of purchase. Instead of selling cars outright, which is now forbidden under the covenant of the British Motor Trade Association, they offer to let prospective buyers either "borrow" or "try out" the new cars for an indefinite oeriod. • The sale price, usually twice as nuch as the car cost from the maker, s prearranged and is paid as soon as the 'try out" has lasted six months, after which the covenant no longer operates. •In this way the black market in 1946 models is kept alive and prices are itill rising. As much as £100'0 is now being paid for a Vauxhall 14, which is listed at £479, including purchase cax. Spofeesman of the association said: ■'Profiteers who do this are still-break-ing the covenant. If a person gives a new car to anybody for such 'testing' be is transferring the ownership to somebody else, in which case the covenant is broken." The association will test the strength of it's convenant before the courtssoon. Three cases in which cars believed to' have been sold at inflated prices within the six-months period are being examined -by legal experts. Another move which the association is making to fight the black market is by checking the sale of new cars to people who try to buy thpjn by half-dozens .by placing orders with several agents. A list of people who have ibought two or more new cars in the last si'x months is being circulated to traders and manufacturers. If they try to buy another new car, they will now have to satisfy the trade that .they really need it.