Low-deposit fears

Press, Volume CXIV, Issue 33442, 25 January 1974, Page 21

Low-deposit fears

Current British hire purchase regulations, which allow new cars to be sold for as little as $5O deposit, with payments over five years, are causing concern in the British motor industry. Franchise-holders for the various makes rarely offer terms better than 25 per' cent down and payments over three years, and the minimum-term firms are usually one-man concerns which sometimes work from private houses. Customers are usually contacted through news-'

paper advertisements, and the interest charges increase the cost of a $2600 new car to about $3200. The main problem is that the low-deposit firms, not being franchised dealers, are usually unable to offer pre-delivery checks, or free services, and any warranty work must be done by other dealers The British Motor Trade Association also says it believes that many of the customers who enter into low-deposit agreements will be unable to keep up the I payments of $2O a week or' more for several years. ;