Hire Purchase Boom Frightens Traders

Press, Volume XCVII, Issue 28734, 4 November 1958, Page 13

Hire Purchase Boom Frightens Traders

(Rec. 8 p.m.) LONDON, November 3. Britain is racing into its biggest hire-purchase boom, but traders and hire purchase firms clinging to the bandwaggon are frightened, the “News Chronicle” said today.

Cars, refrigerators, washing I machines and a host of other] goods freed from hire purchase control last week were selling as; never before but the men selling I them and financing the boom feared there was too little cash and too much credit in the sales, the newspaper said. One London firm of car dealers —offering hire purchase terms of 5 per cent, down with 50 months to pay sold 50 new cars on tht first day of hire purchase freedom and their entire stock ot new and used cars within two days—equal to more than a month's business, according to the manager. Another dealer predicted a 30

per cent, increase in second hand car prices in a month.

Electrical showrooms and stores have reported a similar boom. Waiting time to get a washing machine is now six weeks. Spindriers and refrigerators were virtually unobtainable, said one London store. As business soars, traders and finance houses forecast a rise in bad debts for traders and overbuying by the public, said the “News Chronicle.” Now it is easy to undertake a commitment with very little capital and a small income Traders are arguing that the cash stake now required for an expensive article is too small for responsible buying.