'Car’ mortgages up

Press, 16 August 1978, Page 1

'Car’ mortgages up

i More people are taking J out second mortgages on : their houses to buy new - and used cars. I Car salesmen say that from 10 per Cent to 15 per cent of people buying used cars finance them in this way. The figure is lower for new cars: about 8 per cent. The method is increasingly popular. Some dealers openly advertise it, while others suggest it to prospective clients and leave it to their finance houses to arrange the details. Sales managers say that

the Government has made no effort to halt the practice, which is a “convenient way of getting round” high cash deposits and tight hire-purchase terms. “It is just another way to sell cars.” said the sales manager of Wrightcars Toyota, Ltd, (Mr A. G. Skinner) “and we are in the business of selling cars.” Finance companies were also pushing the plan, said two other sales managers. “They have got a bit of money now and want to get rid of it.”

Some car dealers have noted an increased demand for new cars. They attribute it to recent price rises for at least eight makes and rumours of more to come. “We are just about out of four-cylinder cars,” said Mr G. Robinson, a senior salesman at Cooper Henderson Motors. “I think the Government has underestimated the market. If we are short at this stage, what will it be like at the end of the year?” Dealers expect more price rises for cars imported knocked-down from Japan, Britain, and Germany, countries whose currencies are strengthening against the New Zealand dollar. They believe that Japanese makes in particular will be affected. This “imported inflation” will be additional to any increases sought by car issemblers in New Zealand. Archibald’s garage has noticed an increase in the sale of luxury cars.