HIRE PURCHASE MOTORS

New Zealand Times, Volume LIII, Issue 12465, 5 June 1926, Page 18

HIRE PURCHASE MOTORS

SYSTEM NOT ABUSED FEW TRANSACTIONS. FOR JOYRIDERS. A chat with one or two business men engaged in or connected with the motor trade ou the subject of purchasing motor-cars on the hire purchase system brought forth an interesting statement in its defence. It was stated that an impression had been abroad in certain circles that the hire-purchase system was feeing abused and that it was the custom of firms doing this class of business to repossess the goods sold and retain all instalments paid, even when a large proportion had been paid,' on the slightest default in meeting instalments when due. This,, it is said, is not the case in the motor trade, and the system operated without abuse, was an advantage to both dealer and customer alike. I TRADir T METHOD Hire purchase trading is a system of granting credit practically universal in its application and recognised as the legitimate method of trading throughout the world. It is one form both of granting credit, which is safe both to the purchaser and to the dealer. Every man has the right to pledge his credit within proper limits. It is a sound business procedure to buyplant, transportation.of other business necessities out of revenue instead ol realising the capital sum required, possibly at a Joss. “We find in the motor world that the. large proportion of motor-cara and other motor vehicles which are. sold to-day are not for luxury purposes at all; the hire purchase system is most frequently used for the purchase of household or business necessities, or for transportation, -which lies at the basis of our country's prosperity. “A large proportion of the sales under this system to-day are made to business people, farmers and others to whom transport has become a necessity. The liine purchase method of trading provides for these people an opportunity of buying plant out of revenue, instead of having to realise their securities in order to find im-

mediate cash. That, we suggest is sound business procedure. “A very small proportion of hire purchase transactions are made with young men who want to take girls out for joy rides; more than three-quar-ters of the cars bought are used for business purposes and as business necessities, transportation is not a luxury to-day; it is the world's greatest necessity, and the speeding up of that and the making of better roads will have a tremendous influence on the development of the Dominion.”