MODERN MOTORING.

Auckland Star, Volume LVIII, Issue 234, 4 October 1927, Page 17

MODERN MOTORING.

DfPetRED PAYMENTS ON OARS

m AMERICAN OPINION".

Employment of reasonable credit in the purchase of an automobile, I believe, is entirely justifiable where the purchase on deferred payment does not necessitate the neglect of fixed living expend ititure, says Mr. W. H. Alford, ▼ice-president of the Nash Motor Company. Robbing Peter to pay Paul has never, so far as I have been able to discover, been regarded as a sound economic principle or good > business practice. It would seem, though, that where the buyer's income. is sufficient to justify the purchase of a motor car, and that he is not in * position to pay cash for the automobile without disturbing bis investment, he should,, by alt " means avail himself of the credit plan in the purchase of his car. Unquestionably there has been, too Jnuch loose credit extended to purchaser* of automobiles, and no one would seriously contend that * such practice, might be regarded as sound business, whether it be applied to motor cars or to any other form of merchandising. An individual, we will assume, has enough money to take care of the down payment required. He purchases;" "the automobile and assumes the obligation of paying for the balance.of the purchase price over a period of time. He uses the automobile as a method of intensifying;hi# business activity. He employs it to conserve his strength and increase his health. And his family also finds in the automobile a means of adding to their own health" and happiness. In fact, in a great many cases, the passenger ear of to-day is wholly a necessity. In many other, cafes it is , largely ~.r -necessity, talcing into consideration conditions under which we are required 'to lite in this country. Some few people doubtless purchase automobiles who have ;no reasonable right to. them. These ' exceptions have nothing to do with the " general rule of conduct for the majority. There is nothiiw abnormal whatsoever vabout the use of credit to extend the j benefits of the automobile to the largest i; possible number of people. t" It is strictly a normal development, and tf carried forward on the proper basis has no dangers whatsoever. The ; advantages to the installment method ?#f buying automobiles are widespread ;«nd powerful. *