New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-25
By c. E. +. SCHARPS

leading and decevng the intending motor Car buyer ough
the medium such dealers dispose OF their goods at IN
H,.d rc.s And because he does understand how the
tenn works the prospect shopping along Automobile Row until
he gets the biggest possible allowance for his old makes
ready victim.
some hidden why such automobile dealers able to allow
him more for his car than really worth Thus for the
ce operation of the scheme Of which he himself victim ne
has his own cupdy partly blame He falls for that hoay old
trick merchandising marking the goods order to mark
them down.
The man who has an automobile trade makes the mis-
take of thinking that company which offers the biggest allow
nce for used gives him the best bargain chances to
one he stops the for the offer his old
being big II he did he would realize the mistake ne 10
making
Trading your head off, they call it the automobile bust
ness when dealer gives much of allowance on an old car
Big discounts usually the bottom of such long trades In
stead of being aed therefore when he gets uneasonab big
offer for old the buyer ought look with even greater care
into the merits of the proposition made to him.
The advantage he is getting is apparent than real tie
Just thinks he getting for his Actually ne paying
more for his than it is worth
Take a case such heard of recently Three dealers all
handling cars in the class made offers used which
has quick of $500 One offered that much another
$3.50 and the third $500 . ~
The customer took the $500 offer believing he getting
all the best of the trade. But hep Not for minute
The dealer offered the longest trade could do because
he was selling a 40 per discount against . and Il
per the others His should not egmatey have been
priced above 800 Therefore, represented SZOO less intrinsic
value to the buyer than either of the other two cars
The customer paid less cash for the than would have
been required for either of the others But least
he would have got real 500 The he actually bought
was ST. 300 automobile masquerading 81 500 machine
Yet salesman for either of the two other concerns could
convince the buyer the the All he could
the $500 for his old He thought he had made smart deal
when he sold his second hand machine high
But there greater discrepancies than this some
deals know of took car three years old to several
dealers high priced machines of them properly high priced
The offers he got ranged from $500 up to S|oo which surely
represents some difference Of opinion want to call that
The fair price the $500 and the really good deal
ers bid only moderately the old But OF course the man
took the S 200 and put ST. 800 cash Tor S5oOO
machine That is the listed $500 but the material it
and the big selling discount would have made dear at SZoOo
In this the dealer make 5000 only Tor the
sake getting of his the road he knew he could
realize s4OO on the old machine would $500 of his
commission e accepted this much instead OF the S4OO he
would have made had he got his full 40 per cent
The idea clear isn't it? 1t to the New York
market To get dealer the factory put the discount high o
take care of list price made high too Subtract from
the price to deae$2 00a further discount for the fac
orys profit and get idea OF how much real
value there in such automobile estimate that the
factory makes Is per ahead OF the dealer 4O cent
that leaves the material figuring out about 81 ZOO
And incidentally if the to throw the
the se. for quick sale to-day could get about S. 200
for il from regulation second hand dealer. Such dealers know
the conditions OF manufacture and sale OF cars hey subtract
the likely and when they get through getting
lust about for your from them
Yet this man who got 200 for the automobile he turned
in that he knew worth anywhere that probably
consrstang himself having made good All he could
So. in front of him 200 his old For that supposed
bargain he sacrificed his chances OF known make OF
repuabIy priced The goods he buying didn't
much TO him as the car he trying to sell
Under such conditions what chance has the who
,..en,ing fair listed Very little automobile buy
er are swayed by such Very little long little
extra money taken their pockets going influence
the Judgment Of motor buyers.
Until such time automobile purchasers realize that there
"a no sane reason several OF offers hundred of dollars
anart a. allowances deals for selling the
elias. they will picking for the automobile dealer who works
long discount and willing to slash into his sales profits for
the sake of making sale This is price cutting matter what