One aspect of hire purchase about which little has hitherto been known is the length of time that contracts are outstanding. The maximum length of contract has in post-war years nearly always been limited by official controls. Agreements can, however, be taken out for shorter periods; and whatever their intended length, they may be completed before the due date (as may happen, for instance, when a purchaser of a car decides to trade it in for another) or even after it. The completion of a hire purchase contract releases part of a consumer's resources for other purposes, which may include taking out a new contract. So the timing of completions may have an appreciable effect on further purchases of cars and other consumer durable goods.
Published on 01 March 1964
Other Quarterly Bulletin 1964 Q1 articles
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