Lower car deposits sought by dealers

Press, 30 August 1977, Page 6

Lower car deposits sought by dealers

Wellington

The Government will possibly be asked to consider reducing the hire-purchase deposits on used cars if the current decrease in the registration of new cars continues .the Minister of Trade and industry (Mr Adams(Schneider) said tonight. ■ He said that ■ he had last week met a deputation from the Motor Vehicle Dealers' Institute and had been asked . to request the Government to 'take some form of action. The Minister said that the Government target had been ,65,000 new car registrations during the year. However, he had been told by the institute that if the decrease during July continued for the whole year that target would not be met.

Mr Adams-Schneider said that he told the institute that if the July trend continued into August he would discuss with the Government the possibility of reducing the 60 per cent deposit on used cars and 1 extending the present 12 month repayment period.

He said that there was: nothing formal before the Government at the moment. The value of goods sold, by surveyed businesses on! hire purchase has increased) by S6OM, or 16.1 per cent, in j the last year, according to) the Government Statistician) (Mr E. A. Harris). Sales in the year ended) June 30, 1977, were worth 5433 M. compared to $373M ini the year ended June, 1976,: and S3OOM the previous year.. During the June quarter of) 1977 sales on hire-purchase’ were 5112.2 M — up 28.1 per

(cent from the $87.6M reticorded for the <ame period I last year, said Mr Harris >[ Sales in the June quarter • of 1975 were worth $84.7M •I Motor-vehicles sold on I! hire-purchase in the June (quarter were worth 39.1 per cent more than those sold in

.ithe same quarter of 1976 ■ (from $51.6.M to $71.8M) Plant and machinery hireI .purchase sales increased by 1145.2 per cent (from $13.3M ijto 519.3 M). ii However, fewer television II sets and other household and (personal goods were sold on hire-purchase, according to l;the Government Statistician’s i [ survey. il Sales of television sets (were down 22.2 per cent ((from $2.7M to S2.IM) and ’) those for other household and ■ persona] goods were down 5 “per cent (S2OM to SI9M).