HC Deb 28 January 1957 vol 563 cc131-2W
Captain Kerby

asked the President of the Board of Trade to make a full statement on the effects of the reduction of the deposit required of buyers of new and second-hand motor cars, in so far as sales are concerned.

Sir D. Eccles

I understand from the trade that, in the first three weeks of January this year, hire purchase contracts for new cars were running at a rate some 80 per cent. above the rate for the month of December, and for second-hand cars were running at over twice the December level. Compared with the month of January a year ago, hire purchase contracts for second-hand cars in the first three weeks of January this year were at a rate about 40 per cent. higher, although for new cars they were still some 30 to 40 per cent. lower.

IMPORTS INTO THE UNITED KINGDOM
— 1950 1951 1952 1953 1954 1955 1956
Cotton yarn (million 1b.):
Total 14.5 31.7 7.3 3.4 10.7 14.0 16.8
India 9.3 4.0 0.2 0.8 1.3 1.6 4.3
Hong Kong 0.1 0.3 neg. neg. neg. 2.1 4.4
Netherlands neg. 0.7 0.7 0.3 1.2 1.2 0.7
Belgium 0.2 11.0 4.4 0.4 1.7 2.2 0.9
Italy 4.2 9.1 0.7 1.4 2.1 2.3 2.4
Portugal neg. nil nil neg. 1.8 1.1 0.3
Egypt neg. 3.0 neg. neg. 1.5 2.2 0.3
Pakistan nil nil neg. nil neg. 0.1 2.5
Cotton piece goods—grey (million square yards):
Total 245.4 340.0 144.3 76.2 236.4 268.2 267.7
India 71.0 105.6 10.1 15.9 127.8 130.3 128.1
Hong Kong 3.2 12.4 1.6 0.7 18.1 48.8 55.9
Japan 91.0 85.0 68.5 38.3 52.0 63.9 32.1
Cotton piece goods—other than grey (million square yards):
Total 41.4 35.5 35.4 22.5 30.9 31.3 38.5
India 5.1 2.8 0.5 0.6 4.9 6.1 4.9
Hong Kong 1.6 4.6 0.7 1.3 1.8 2.6 1.9
Germany (Western)* 3.4 3.5 8.4 3.7 3.7 3.5 5.3
Netherlands 5.7 3.1 2.0 3.7 3.7 3.0 3.8
Belgium 3.8 7.9 10.3 7.8 11.8 12.5 13.8
Bleached 4.6 4.4 1.2 0.8 1.6 2.2 0.9
Printed—
Cretonnes and chintzes 0.7 0.3 0.1 0.4 0.1 0.1 0.1
Other 10.0 4.4 3.2 2.9 4.2 4.3 9.7
Dyed in the piece—
Pile fabrics 2.9 4.1 2.2 2.9 2.1 1.4 2.5
Other 10.6 8.0 22.0 5.5 5.5 4.1 4.9
Wholly or in part of dyed yarn and commonly known as coloured cottons—
Damasks, tapestries, brocades and the like 6.5 5.9 3.3 5.2 5.9 6.5 7.1
Other 6.0 8.3 3.4 4.9 11.4 12.6 13.1
* Including Eastern Germany in 1950. neg. = negligible.

The figures suggest that the reduction in hire purchase deposits has been a substantial help to the second-hand car market, and has given a stimulus to the hire purchase sales of new cars. Hire purchase sales account for less than one-fifth of the total sales of new cars. The improvement in the second-hand car market should help the market for new cars.