The Washington times., 1913-04-19
MAKER DISCUSSES
SECONDHAND CAR
Carl J. Metzger Talks About
Problem Which Has Caused
Many Motor Failures.
By HARRY WARD.

The interest which automobile deal
ers and manufacturers are displaying
in a general movement in the industry
to seek satisfactory solution of tho
secondhand car problem. which
probably has caused more failures than
any one other thing in the history of
the automobile, IS again in evidence.
One of the best-posted men in the
industry has presented his views on the
subject and his statement is worthy.
the consideration Of every person con-
nected with the motor car industry.
of the Metzger-HerrinSto ton-Argo Com
pany. Among other things he says:
You who read this may have some
times chuckled to yourself over clever
deal that you had driven with an auto
mobile dealer, whereby you apparent
your new car by forcing him to take
Jour old one. Cleaned up and polished
to make a good impression. you imag-
ined that you put over good one on
the dealer. The dealer has undoubtedly
encountered trades on fifty out OF
the moment you drive up in your old
car that you have placed an exasger-
ated value on it. and. in consequence
he is ready for you with the subtle
suggestion that undoubtedly he can
dispose Of It at such and such a price.
the same to be applied on the purchase
price of your Few car. He will even
90 so far as to say that he will take
the responsibility of selling the old car,
and will allow you what he believes he
is going to get for 1t on the price vf
the one he undertakes to sell you.
Cannot Fool Dealer.
DO you think that when he has
handled hundreds and hundreds of these
trades, you-a mere novice-can fool
him in REGARD to the value of the car
you wish to dispose Of? You can not.
He knows all these things. SO does the
manufacturer whom he represents. AMI
in consequence the price of the new
car you are buying Is 80 arranged as
to take care OF the loss covered by the
sale of your old car, He will probably
sell your old car for about half what
he allows you, the same being what
you should get were you to make the
attempt.
You say-How is 1t done? Here is
the truth. A company that builds cars
with the idea of trades looks frst to
the selling price Of that car. then Al
lowing a leeway for price cutting TO
meet competition and a liberal margin
for the morey lost on the sale OF your
old car. use the balance to build their
car and make their profit.
THE company who does not make
trades. who will not take your Old car
in trade. but who will sell your car
for you. figures in an entirely different
way. They have built their car the
best they know now. They have added
a fair margin of profit, thus arriving
at a selling price from which they VIII
not deviate undSr any circumstances.
How 1t Figures Out.
"Jn the case of a car selling for say
s., 500 $500 must be taken off for the
money which will undoubtedly be lost
on the car -yorf trade In at say $GeO. |
There is generally 500 leeway 10
meet prices This brings the real
value Of the car down TO tz.s SUB %
per cent, you have the factory value OF /!
that car at $2.240. which must include /
factory profit not ever lower tnan ~
per cent of the cost: therefore. the car
to build about s., 900. While the profit !
of both manufacturer and dealer Is
legitimate, II Is safe to BAY that sIOO
buck was passed to you. You paid !
g. 500 for a car that you should nave
paid $500 for without trade deaf;
Now, take the case of the manufac-
turer who does not trade. His car sells
at saw $500 the same dealer and fac
tory profits applying. close scrutiny /
Is given to this latter car It will be
noted such>a car Will measure In speci-
fications and equipment far beyond the !
higher priced car. In other words. In
the case of the manufacturer who
makes no trade deals. you have paid
s. 800 for full value In the specifications.
You. will sell your old car now for
say $500. which is just one-half what
the trader will allow YOU. Your car has
cost you g, 800 net and YOU have un-
doubtedly better car. You have left
the dealers profit. which
will take care Of the service rendered
you in the years to come. because he
has made his full profit. which profit in
cludes a provision for such service