“T.P.S.”

Dominion, Volume 24, Issue 266, 6 August 1931, Page 2

“T.P.S.”

It Keeps Up Fears that the acute business depression iu the United States would bring critical times for finance companies because of a wave of defaults on instalment contracts and a. multitude of repossessions, have been proved quite groundless (says the “Literary Digest”). In fact, the poor year of 1930 showed an increase of less than one per cent, per one hundred transactions over both 1928 and 1929, as far as defaults were concerned. During 1928 and 1929, the ratio of new cars repossessed when one-third of 1 the price was paid down, was 2.8 pee cent.; last year it was 3.6 per cent. The average amount of the instalment debt on each new car actually decreased. In 1928, the average amount of the note purchased was 96$ dollars, in 1929 595 dollars, and lasi year only 567 dollars. The percentage of cars sold on the instalment plan remains practically constant. It was 58.1 per cent, in 1928; 62.6 in 1929, and 62.3 per cents, in 1930.