HIRE-PURCHASE CARS

Taranaki Daily News, 29 September 1930, Page 7

HIRE-PURCHASE CARS

SOUTH AFRICAN “LUXURIES,” SURPRISE FOR THE INDUSTRY. Capetown, Aug. 9. idle Government has sprung a surprise on the motor-car industry in South Africa by deciding that after January 1 next no more criminal prosecutions are to be instituted against people who obtain cars on the hirepurchase system and sell them before they have completed their payments. Legislation on the subject is to be introduced next session, ft is stated that this legislation will be retrospective, covering all motor-car hire-purchase agreements, no matter when they were entered into. It is suggested that much of the present depression is due to people having little money for anything else than the instalments on motor-cars. The Government decision will leave to the sellers of cars which have been disposed of; only a civil remedy. ' The motor-car trade throughout the country is up in arms at the reported decision, and the question is being asked why should this trade alone be picked out when houses, clothing, furniture and practically everything else is sold on the hire-purchase system today. The reply of a Government official is that furniture and house hire-purchase agreements come within the category of the essential. Motor-cars are regarded as “luxuries,” and it is given out that the Government intends to “protect irresponsible buyers against themselves.”