Evening star., 1921-03-13
NEARLY. HALF CARS
SOLDARE 0NCRED|T
Believed That the Deferred
4, Payment Plan May Be
T Much DeveI0ped.

Between 40 and 80 per cent of the
cars being sold today are being mar
ketca on some deferred payment sys-
tenn.
This is the first absolutely authori-
tati;s answer to a question that has
puzzled many sales executives of the
automobile industry and which has
interested leaders in many other lines
of activity, including banks which ad-
vance money on securities issued by
the time-payment companies. and also
manufacturers and dealers in such
things as pianos. talking machines
and furniture. Heretofore estimates
on the percentage of automobiles
sold on Il time payment basis have
ranged all the way from 60 per cent
to 80 per cent, these percentages be-
ing merely guesSes made by men
more or less familiar with actual con-
ditionS in restricted localities. The
present figure of between As per cent
and so per cent, or to be exact. 46..
per cent is made available by the
General Motors Acceptance Corpora
ton, the statistical division of which
has just completed tabulating the re-
plies to a QUESTIONABLE which was
sent to all it's dealers. numbering we'll
over 10000. in all parts of the United
states. over 10 per cent of the deal
ers to whom the blanks We're sent
made complete reports. showing
total of 1915 cars sold. of which
1a.407 were sold for cash and 69.129
We're sold ION time" or 46.I per cent
of the total number.
Figures for Year Presented.
The period for which the question
naire asked information was that
from August /. 1919. to July 81. 1920,
and therefore includes the latter half
of summer selling season. the fol-
lowing fall. winter and spring sea-
sons, and the first half OF the succeed
ing summer selling season. 1t is.
therefore. a comprehensive sweep of
sales conditions over d full yearly
cycle of the industry.
In this report the General Motors
dealers gave separate figures on sales
to city dwellers and to farmers and
in each class listed the number of
sales of new and used passenger cars
and new and used trucks for cash and
on deferred payments. 1t is interest
ing to note that of the sales to farm
ers. 3S.216 were sold on time. the cash
sales numbering 1926.
AS was to have been expected city
dwellers paid cash more frequently
than the farmers. only 44.9 per cent of
cars sold to city dwellers being
through credit arrangements, there
being 61.0Sl cash sales out of a total
passenger cars reported sold to city
dwellers We're sold on credit. while
IS per cent of the new trucks sold to
city dwellers and thus placed in the
service of mercantile houses were
partly financed. 1t is interesting to
note in this connection that only SIP
per cent of the used trucks were sold
on time, and 51.9 per cent of the used
passenger cars were sold to city
dwellers on General Motors Accept
ance Corporation finance plans.
Very much the same relative po-
sition is shown by the figures repre-
senting sales to farmers of new and
used passenger cars and new used
trucks. 49, per cent of new passen-
ger cars delivered to farmers being
sold on deferred payments. and 5S.1
per cent of the used passenger cars
being similarly disposed of, while
5s.9 per cent of the new trucks are
sold on time to farmers, and 5s.7 per
cent Of the used trucks. This figure of