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by ESMOND'S MOTORS
Practically every day of the week franchised car
dealers hear people complain about the high prices of
cars. Actually, new cars have risen very little since the
last war—the main increase has been in sales tax which
has risen 8 1/3 per cent in 1949 to the present 30 per cent.
This situation is not peculiar to Australia, indeed
when we compare our 30 per cent with the recently
imposed 55 per cent purchase tax in Great Britain, we
must be the envy of every English new car buyer. To
analyse the situation properly we have worked out a few
comparisons between to-day's prices and those charged
in 1949. We did not pick that year for any reason other
than that it was the first "average index" survey of
prices taken after the war.
A two pound loaf of bread sells at an average price
of 1/6}. In 1949 its average price was 8d., so it has risen
130 per cent. A pound of tea has risen by 138 per cent
(2/9 to 6/6) since 1949. Beer has risen by 90 per cent,
beef by 246 per cent, milk by 73 per cent and petrol by
28 per cent. All of this probably makes many readers
sigh for "the good old days"—but wait a moment. The
basic wage to-day is an average of £14/8/-, a rise of
142 per cent over the 1949 average of £5/19/-!
Had the cost of new cars risen in direct proportion
to the basic wage, a car that cost £1,000 in 1949, would
now cost £2,420. By the same token, petrol would now
cost a prohibitive 6/7 per gallon in the capital cities plus
a higher than at present differential in country districts.
You may well ask why the cost of motoring has not gone
np proportionally and why, in view of rising costs, those
engaged in the automotive industry still prosper.
This is because of two factors. Firstly the manu
facturer and the dealer have had to become more
efficient and the number of vehicles sold and serviced has
more than doubled over the past twelve years. As new
car sales increase, so must the sales of used cars and in
oonsequence used car values have never been more
attractive to the buyer since pre-war days.
Just at the moment we have several units that would
suit the most fastidious buyer. These are almost "as new"
cars at used prices. Compare these for value with what
else is offering in the district. We are open until 9 p.m.
week-days and 5 p.m Saturday and Sunday, or if you
can't call phone Queanbeyan 432 and we will call at
your home or office.
ESMOND S MOTORS ?£
ULO-kgjP G.M.H dealers for YARRAIUMIA time and A.C.T. lor «0.years' ;
169 CRAWFORD STREET, QUEANBEYAN. Phones 83 432 433
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