East Oregonian : E.O. (Pendleton, OR) 1888-current, 1920-06-05
WHO BUYS THE MOTOR /.
GAR ON TINE PAYMENT


Who Is tfiis man who buys an anto-
: mobile "on time? =
Is he spendthrift ioyrider turning
his pockets inside out, mpoverishing
himself forsmonths that he NAV whirl
about the country endangering his own
and others EvesY
or is ne conservative property
owner. with assets and an income that
amply entitIe him 10 credit in max Z
ing purchases, who finds an automo-
bile a necessity?
.He Is the second man have sketch.
ed above. The first Is the man as he
Is popularity imagined whenever the
me-buying OF, automobiles is men
TONED in polite but uniformed so
ciety. Here are accurate facts on the
buyer on credit as he really Isl:
He Is over 35.years old.
He has over $1,000 dn real estate
He has over $3z5 a month income.
He buys a $l,044 car
! He pays "A per cent in cash.
He then pays &c per cent. in ten
months.
His monthly payments average only
20 per cent of his income.
With over 100000 cars in use, IL.
Is impossible to generalize an answer
to the question 'twho runs an auto
mobile" for any figures that would
answer it would be too brig and broad
pto be Of value. Nor is there any
class so willing to give full and COM
plete information about itself as is
that of the buyer on credit Obs
viously when a man asks for credit
he must show himself as he is: at
other times ne is sure to show an en-
tirely 1ustifiable reluctance to answer
questions about himself.
These figures OF the Acceptance
Corporation are derived only from
General MOTORS business, covering
cars OF General Motors makes only
since the GMC deferred payment
plans are available only 10 buyers and
dealers in these. cars General Mo-
tors cars, however. cover practically
every price classification from the
s735 Chevrolet to the Cadillac that can
cost over S. 900 with an enclosed
body The other makes ON the list
arc the Buick, Oakland. Oldsmobile.
Samson and ScripTes- Booth passenger
cars, and the Oldsmobile. Sampson.
and GMC Trucks and :Sacson Tractors.
Just what difference would arise in ]
make of car and truck it is impossible
to say. They do, however, give a clear
idea of the age. occupation. income. |
financial responsibility and economic
Judgment OF the largest and most var
led body of automobile buyers concern |
ing whom accurate statistics are avail
able.
In only about one-third OF the cases |
under review were dependable reports
of real estate equities secured. These |
show an avrage value of S7,S05.54. |
Whether this figure would be increas |
ed or decreased by the inclusion OF |
complete reports it is Impossible TO
say, but even if it be considered that
all the buyers reported all their real |
estate. the average becomes s2,455.2S |
or more than twice the value Ct the
average car. |
1t seems obvious that man hold
ing large equities would be quite as
much disinclined to reveal them as
would persons holding less property,
and perhaps even more so since the
tax situation and other factors deter
the larger holders to greater degree
then being open to censure they arc
due TO be praised
From the point of view of the econ
omist it would be better for the pur
pose were allowed to buy automo-
biles. II
When "a man walks into an auto
mobile dealers establishment with /.
cash in his pocket to buy an autonno-
bile neither the dealer nor any one
else, has any right to ask him to ex-
plain the origin of his money He
may be an embezzling hank cashier.
he may have run off with somebody's
liberty bonds, he may be a burglar
Or what not. The money he pays has
no identity He may also be a ship
yard riviter, flushed with cash earned
under conditions that it is hoped never
will be repeated. or a sugar merchant
who has Just sold several tons of sllg-
ar. III
When a man demands credit he II
must prove two things--first, his own
stability as a member of the com
and second. his justification II
or the use of credit.
The man who buys an automobile |
IN credit. therefore. is not only pos
tossed of a standing in the community
uch as tofindicate to the lender of
he money that he will be able to pay
IF the debt in incurs. but also 'has
ome legitimate use for the automo-
lille he buys. This is the class of
'uyer whom the automobile industry III
erVes most and whose use of the
automobile is the economic justifica-
ion for the enormous growth OF the
1t is this class of buyer that
he Acceptance Corporation serves
nd upon which are based the figures
hat have been quoted
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MINT IN NIT hIkIAAF iii