Cars Bought on Time-Payment

Sun (Auckland), Volume II, Issue 348, 8 May 1928, Page 7

Cars Bought on Time-Payment

Figures For U.S.A. Thoroughly Analysed A very thorough investigation has recently been made in U.S.A. into the figures of instalment buying, and the results have been published in Professor E. R. A. Seligman’s “Economics of Instalment Buying.” The analysis of the number of motorcars bought on time-payment reveals the following percentages: New Cars 192 G 1924 1921 Typical Cheap Car G 2.1 61.9 46.9 Typical High Price Car 4G.9 42.7 35.6 Used Cars Typical Cheap Car 69.6 66.9 77.0 Typical THgh Price Car 60. S 55.0 53.7 Several conclusions can be drawn from these figures. 1. The practice of buying motors on time payment is rapidly growing in U.S.A. 2. The percentages of used cars bought on time-payment are larger than of new cars. 3. Low-priced cars, both new and used, are bought on time-payment to a greater percentage than high-priced cars. Points 2 and 3 can be summarised by saying fat the buyers of used cars and of low-priced cars are either less able or less willing to pay for their purchases than are the buyers of highpriced cars. PERCENTAGES RISING Used c v ar sales represent just under one-half of all car sales, and this figure has been stationary for some time. It follows from this that about 60 per cent, of all car sales in U.S.A. are on time-payment, whereas some seven years ago the figure was nearer 40 per cent. No such thorough investigation has been made in New Zealand, but it is reasonable to presume thqt nearly similar percentages rule here.