SALE OF CARS

Evening Post, Volume CXVI, Issue 31, 5 August 1933, Page 10

SALE OF CARS

HIRE-PURCHASE AGREEMENTS

INTEREST IN JUDGMENT

(By Tolegraph.) (Special to the "Evening Post.") DUNEDIN, This Day. Vital interest to motor garages and purchasers, of ears on lime payment attaches to the judgment delivered in the Wellington Magistrate's Court this week in which a company failed in its' claim against a motorist for the balaneoj owing under promissory notes, although he had returned the car. . , ' Men in Duncdin- closely connected with the sale of cars; confessed^ that they had knowledge of . only • the' working principles of hire-purchase agreements. The practice 'generally followed hero when cars have been seized for default of instalments is to auction the cars. When they fail to produce sufficient to pay off tho balance, claims for the outstanding sum, including any expenses for placing the car in repair for auction, are made against the defaulter. Some firms now- sell under a "conditional purchase" agreement, as they found that under a hirepurchase agreement the hirer could return <;he car when he fell into arrears and maintain that as the car was only hired there was no compulsion to complete the payments. The agent' of a finance firm said it was inequitable that tho security on which finance was arranged should be returned aud that tho hirer should then be liable for th'c remaining promissory -notes. Under hire-purchase agreonients the user was- always referred to iis tlio hirer, and his monthly instalments wero merely payments for the" hire of the car, which he would not, own until tho payments were completed. Equity was aimed at in all their transactions, said the accountant of a large motor firm. It was unjust that a firm to which was owed £10 on a car valued at £90 should seize the car without extending every leniency to a purchaser who was honestly trying to reduce his liability. Ho-agreed "that the law should be amended so that when cars seized under distress were auctioned, and the price realised was greater than the ; debt, the . surplus should be returned to the,debtor.