Easing of car H.P. wanted

Press, 2 December 1978, Page 22

Easing of car H.P. wanted

PA Wellington The New Zealand Automobile Association will ask the Government to consider easing hire-purchase terms for cars. The association wants the terms to be improved to 50 per cent of the cost price as a minimum deposit for new cars, with 18 months to pav the balance. At present it is 60 per cent and 12 months to pay. It wants the terms for used cars to be 60 per cent of the cost price as a minimum deposit and two years to pay. instead of 60 per cent and 18 months. The decision was made after a request by the South Canterbury Automobile Association. In a letter to the national association, the South Canterbury A.A. said that because of the increasing price of new cars, the whole motor ' industry, and consequently |A.A. membership, was sufferling through restrictive hire--purchase regulations for cars when compared with other consumer items. Five of Christchurch’s leading new and used car dealers say they would welcomes any such move to boost sales. Despite the present re-, strictions, spokesmen for the firms said, both new and used car sales had been fairly steady throughout the year with a slight mid-year increase in the sales of used cars. Some found a problem with the supply of new cars.

Spokesmen for Hutchinson Motors, Ltd, Blackwell Motors, Ltd, Farmers’ Motors (Canterbury), Ltd, Cooper Henderson Motors, Ltd, and the N.Z. Motor Corporation agreed that they would welcome the move despite the fact that recently-adopted mortgage finance schemes have proven effective. None reported dramatic increases in sales although most people knew that car prices would probably rise next year.