CASH AND CREDIT.

Hawera Star, Volume XLVI, 21 August 1926, Page 14

CASH AND CREDIT.

IN SECOND HAND VEHICLES. Inquiry in Auckland reveals that cheap light cars are sold most readily on hire-purchase' terms. A Nerv Zealand Herald im’estigator says that for cars priced -below £3OO the instalment sales usually exceed the cash deals. Cars \ r alued at. £SOO, or more, attract buyers who prefer to pay cash.

Some Auckland motor agents representing high-class cars effect quite 85 per cent, of cash sales. On the other hand there are dealers in popularpriced cars Avhose instalment sales are 85 per cent of the total. An Auckland garage proprietor who sold many scores of a particular American light four-cylinder car last year, did 75 per cent, of his business on hire-purchase agreements, and utilised, the traders’ finance facilities to the extent of £15,000. This dealer has now taken over the agency of a car in a higher price-class, and finds 'that only 20 per cent, of his customers require time-pay merit accommodation. While the .system of hire-purchase of cars'* is now universally accepted, there is some difference of opinion re-o-ardino- the minimum acceptable deposit, and the length of the credit period. The majority of dealers will not accept a deposit of less than onethircl. or agree to the extension of the balance over more than 12 months. Sales on this basis are most numerous.