Salient. Victoria University Student Newspaper. [Volume 39, Number 2. 11th March 1976]
Hire Purchase Regulations
Hire Purchase Regulations
Hire purchase generally has been toughened up, and on new cars and trucks it has been abolished. What will this achieve? In the short run, it will reduce the buying of cars, colour TV's and the like - as Muldoon did in his 1972 measures. In the longer run, it means we can expect another mad rush of car importing like that of 1973 when Labour lifted Muldoon's controls. In other words, its not cutting out the demand, merely postponing it.
Who benefits from this? Not the car traders, nor the finance companies (and my heart is bleeding for both of them - but they will probably lay off workers because of the reduced trade). The average bloke wanting to buy a car or colour TV will find it much more difficult. The rich however, who can find other sources of loans to pay the deposits, will be affected very little. Particularly they can borrow off solicitors who have a strong bias towards wealthy clients.