At Ruth and Gary’s Place

Gary: Now, Mark, don’t you think it’s better to have your clothes made to measure?

Mark: No, I prefer to buy ready-made clothes. For one thing, I’m stock size; so things like the one today normally don’t happen. Even if they do, it’s no problem to have your clothes altered because in this case only slight alterations are required. The long and the short of it is that I spend little time (in) getting my clothes. It would take me much more time if I had clothes made to order. For another thing, off-the-peg clothes are usually cheaper than tailor-made clothes.

Gary: I see. However, on the other hand, a beautifully tailored suit looks much better on you than ready-to-wear clothes.

Mark: You’re quite right there.

Vera: Now, Gary, and what do you do if you want to buy an expensive item but haven’t got enough money to pay for it straight away. Can you buy it on hire purchase, for example?

Gary: Yes, this system is rather popular here. It became common during the first half of this century. And today a large proportion of all the families in Britain buy on hire purchase goods that will last, such as furniture, household goods and cars. In the USA the proportion is higher than in Britain. By the way, the Americans call this system of buying goods “the installment plan”.

Mark: And what’s the procedure for buying goods on hire purchase?

Gary: Well, the buyer makes a down payment of 10% to over 30% of the price when the goods are delivered to him and pays the rest by weekly or monthly installments until the full price has been paid. Payment may be spread over a period of up to 24 months.

Mark: And who do the goods belong to when the regular payments are being kept up?

Gary: The legal ownership of the goods remains with the seller until the final payment has been made.

Vera: And what do you think of this way of buying goods?

Ruth: It certainly has advantages. For example, it helps newlywed couples with small incomes to furnish their homes. Then it encourages most people to budget carefully. If families are paying each month installments on such household goods as a washing machine and a car, they can spend less money (or perhaps no money) in useless or harmful ways, for instance, on too much alcoholic drink.

Gary: Besides, it increases the demand for goods, and in this way helps trade and employment.

Mark: And does this system have any disadvantages?

Ruth: I’m afraid it does. Some people may miscalculate their financial possibilities, and as a result, plunge into debt.

Gary: And there’s the danger that when trade is bad, hire purchase buying may end suddenly and make trade much worse, with, as a result , a great increase in unemployment. This is why in some countries the Government controls hire purchase by fixing the proportion of the first payment and the installments.

Mark: What about the price of an article bought in this way? Is it the same as when you pay down the whole cost?

Gary: No, as a matter of fact, it isn’t. In this case it is higher than the price that would be paid for cash. There’s a charge for interest.

Mark: I see. Have you personally bought anything on the never-never?

Ruth: Yes, in this way we’ve bought a washing machine, a fridge and a TV set.

Mark: I’d like to have another question cleared up. Do you always have to pay cash in shops?

Gary: No. Major credit and charge cards, such as Visa (or Barclaycard), American Express, Diner’s Club and Mastercard ( or Access), are widely accepted in shops, restaurants and hotels. The cards they accept are often displayed on windows and doors. Eurocheques can be used at banks to get cash and are accepted by some shops, hotels and restaurants.

Mark: Thanks, Gary.

Ruth: We seem to have covered a great deal of new ground for one day. Why not switch on the TV set and watch television for a change?

Vera: Good idea.

Date: 2015-12-17; view: 922