New-York tribune., 1911-12-03
SELL AUTOS ON CREDIT
Studehaker Company Announces
Radical Chance in Methods.

An innovation that is fraught with great
significance and which may revolutionize
selling methods in the automobile business
has Just been announced by the studebakcr
CORPORATION. the s45.OOo.OOO concern which
manufactures EMF 800 and Flanders
90" automobiles. This is, in word, that
hereafter the studsbaker Corporation will
sell automobiles on time-will accept notes
from farmers and other responsible buyers
for it's product.
Up to this time the automobile industry
has been unusual in that it was a strictly
cash business. No dealer and no individ-
ual buyer, however we'll rated financially
could procure one minutes time on the
purchase of an automobile That this was
so was remarkable. and yet IL was due TO a
combination OF circumstances which rem
dered any other method Impossible. Ihdt
this condition is now happily changed, as
evidenced by this latest Studebaker move
is proof that the automobile business mas
finally entered upon an era of stability and
pernanency as have other industries, as.
for example. the sewing machine, farm I'M
plements and others.
Speaking of the move and its bearing on
the future Of the automobile industry, wal
ter F. Flanders, the general manager, says:
II believe the automobile business should
be placed on a credit basis, and think 1t
will prove 10 be the most important ad-
vance that has been made in the automo-
bile industry since its inception. 1t indi-
Gates that the automobile has now arrived
at the stage whore ii is no longer high
priced luxury. but has actually become
necessity in the lives of all business men
and other well-to-do people.
After all, good paper il the same as cash
to a concern such as Studebaker's, which
has the necessary financial resources to
handle II. while from the buyers and the
dealers standpoint there is a vast differ
ence. OF course, we've all heard the story
Of the man who mortgaged his house TO buy
an automobile. but II there are any such
cases they are very rare, as our extensive
experience shows.
"On the other hand, there is many "A re-
sponsible business man and farmer who is
cminently able 10 own an automobile and
who vet hesitates TO take so much cash
out of the reserve on the instant. Then,
again. we ind that frugal persons frequent
ly resort 10 the eXpedient OF paying tho
ready cash they can afford for an unreh-
able secondhand or a poorly constructed
dinky new car when, by the credit pidh
they would select a first class fuh-sized
automobile. paying part cash and taxing
time for the balance.
In short. having in view the future rain
or than the immediate present ana WIN the
object of expanding and at the same time
placing our business on as solid tounda-
ton as others. we have simply adopted
the credit method, which, more than any
other factor. has been responsible for the
success of such concerns as the lnterna-
tionsI Harvester, the Rock Island Plough
the Studcbaker wagon. the Singer sewing
machine and other concerns whose market
Is worldwide
Il have long considered that the advent
Of credit in this business was inevitable,
and we have simply waited for the right
time to lead in It's inauguration. That time
arrived when we had standardized our
product. had proven its worth and perfected
our facilities for taking care Of the busi-
ness. So the move now made is but the
consummation OF plan long since laid
The automobile IS no longer luxury ,
II has become a necessity 10 the prosperous
business man and the farmer And the m
trinsic value Is there No mechanical de-
vice is sold on 80 small a margin OF proht-
erroneous Impressions 10 the contrary not
withstdndinS ] am speaking now OF cars
made by the large concerns which produce
70 900 or more per anuum and who, in order
TO create a market for their output must
necessarily place the lowest possible price
on them and depend on tho quantities to
multiply the narrow margin Of proht to
satisfactory aggregate.
First the automobile business was called
a game. IL has now attained the dignity
Of an industry. The automobile itself was
originally a play toy. then an expensive
luxury FOR the rich; now it is staple
necessity, and as such 1t should be sold as
are all other staples