New-York tribune., 1921-11-27
National Used
Car Company
Is Proposed
Be Solution of the
Used Car Problem, Says
I'll. H. Brooks, Who Has
Detailed Plan for Project

A national used car company" for
the regulation of the used car busi-
ness of legitimate dealers and dis
tributors, and as a solution of what
has some to be known as the "used
car problem" is proposed by H. H.
Brooks, sales manager. of the Nordyke
& Marmon Company, of indianapolis.
Mr.. Brooks's thought is embraced in
an article entitled "a Concrete Sugges-
tion for the Solution of the Used Car
Problem" and is in part as follows:
Some time ago saw hanging in an
Office in Indianapolis sign read
ing: "A great deal has been said about
the weather, but nothing has ever been
done about it, When read that sign
it instantly reminded me of our used
car problem. But the used car prob
lem can be solved if the manufacturers
and dealers want a solution.
"For years and years we have cdu-
Gated the owner to trade in his old cAr
for new one. We have told him that
was the proper thing to do. Naturally
that is what the automobile owning
public now> believes. 1t also believes
that these cars should be traded in at
big prices and dealers have encouraged
them in this opinion by allowing them
inflated prices. In many cases in
volving trade-ins the owner has proved
to be the best salesman. He has in
| jected into his sale the spirit of COM
petitive bidding, which has resulted
in some of the most nonsensical things
you can imagine business man would
do. 1t seems that the larger the deal
CIR and the better his reputation as
business man the more foolish are the
things he will do when it comes to
trading in second hand cars. The
losses that have resulted from such
tactics are appalling and those losses
mean just that much money taken from
the treasury of your dealers, which
they would use in purchasing your new
cars and in developing market for
your product.
"These losses, if permitted to con-
stinue, will eventually mean almost
complete change in the present retail
merchandising organization, with less
efficient one, perhaps, succeeding it.
Must Stop Trading-In Practice
"New car dealers, if they are to con-
duet their business on a sound basis,
must discontinue taking old cars in
trade. The used car must be removed
from the new car business, but at the
same time an outlet must be provided
for the used car The dealer must dis
continue the practice of taking old cars
because Fundamentally it is unsound.
Now is propitous time for the change.
1t must be a sudden rather than q
gradual change. 1t must be crusade.
This will be the quickest and most
effective way of educating both the
public and our industry. 1t is going to
require heroic methods and decisions.
It's stupendous undertaking, but the
automobile industry is accustomed to
great accomplishments and the solution
OF serious problems.
81 suggest that a corporation be
formed and operated under the super
vision of the manufacturers of pas
senger cars, the passenger car dealers
and the bankers. The stock in this cor
poration will be offered to any one de-
string to purchase it, but it should be
issued on basis that will assure su-
pervision as suggested. This corpora
ton, | would suggest, be called the
National Used Car Company or some
other appropriate name. The sole bust
ness of this corporation will be to buy
recondition and sell used cars. 1t will
have central headquarters, with main
branch houses located in various zones
throughout the country. The number
of zones would be dependent upon geo
graphical conditions and potential
markets. These main branch houses to
be III reality reconditioning plants. I
mention geographical conditions be-
cause I think these reconditioning
plants should be located at points easily
accessible overland, Sc cars purchased
can be driven in instead of shipped.
Within each zone there will be located
as many sub branches as necessary
These sub-branches, however, to be
purely retail establishments, except
provision for minor repairs and adjust
ments to be made on cars purchased
which it is not necessary to paint or
recondition. "A great many of the cars
purchased will be of this class.
Would Limit Buying
"The National Used Car Company
will be prepared to buy the old cars
from those automobile owners purchas-
ing new cars. The company will not
be prepared to buy used cars from own
ers not purchasing new cars because of
its method of financing.
Immediately upon the organization
of the National Used Car Company the
dealers should stop trading in old cars,
and l think they can be educated to
this, as ] am sure the large majority of
dealers to-day would like to do so.
"Inasmuch as these cars will be pur-
chased at the real market value, and
consequently sold at a profit. the Ma
tional Used Car Company will surely
have considerable competition by other
used car dealers. If the owner does
not care to sell his car to the National
Used Car Company he will have the
used car dealer to whom he can sell,
and in addition any individual prospect
he may have for his car.
"-rhe National Used Car Company
will sell it's cars at cost, plus recon
ditioning, plus sales expense, plus
normal profit. A commission should be
Ioc c1>,. J. L n. ~