The New York herald., 1922-01-08

1921. Yet our most recent figures show
that final figures at the close OF 1921
will show approximately 100000 cars
replaced
The opening OF 1922 sees dealers
stocks lower than they were year ago.
There are several explanations for this.
1t should be recalled that following the
first price cuts in automobiles in Sep
tember. 1920, manufacturers did their
utmost to stabilize the market for at
least the first half of 1921. AS result
many of the most popular cars offered to
the public in 1921 carried a price guar
antee up to June 1. This was a pro-
ie,tion to the public and to the dealer.
but IL resulted in a slowing of sales be-
cause the belief gained circulation that
,aIs skculd not be bought until after
June !.
The record for 1921 shows that the
great bulk of sales came after June 1.
although in any normal year the ma
jority OF sales are made in the first six
months of the year. The rush of busi-
ness experienced by the more popular
cars In the latter part OF the year was
surprising to many. Wiilys-Overland
Lad a big business in September and
larger business in October. In fact, Oc-
tober was the largest October in point of
sales and receipts in the history of the
company. November also made a record
and the company failed to fill all orders
for December delivery.
This rush of business has depleted
dealers' stocks. Our figures show that
VIC have less than half the number OF
unsold cars in dealers hands that we
had "A year ago.
without going into any detailed dis
cussion of the history of automobile
sales and how conclusions may be drawn
from them. would point out that motor
car owners In the past two years have
not replaced worn cars with new ones
at the same rate that they have in prevl-
Gus years. 1t is true that they had ''---
ter automobiles and that, through better
service methods and better understand
ing of automobile mechanics, owners
have taken better care of their machines.
But there is a great replacement
trade that normally should have been
felt In 1921 that will be evident this
year. Moreover, prices have been read
justed. The new series Overland at $685.
sells at the lowest price for which an
Overland ever sold. And most cars are
to-day at right price" Buying power
is felt on every hand right now in more
pronounced form than In months past.
We may be sure also that the auto
mobile dealers OF the country this year
will approach in the number of their
used car sales the number OF new cars
manufactured.
Sometimes one hears statements to
the effect that "the automobile business
isn't what 1t used to be-" or there
will not be SO many dealers operating in
1922 after the uncertain times OF 1920
and 1921"
From every source Of information at
my command ! learn that the automo-
bile business for the retailer OF good
cars is good this fall. / believe that
there will be just as many dealers In
1922, If not more, than in previous
years.
Service to the public is more assured
than ever. The readjustment of condi-
tions has brought home the realization
to the dealer that his standing in the
community depends in no small part
upon the service he is capable of giving.
! Parts costs are being cut In proper
tion to first costs. Overland parts prices
have been cut an average of 20 per
cent. beginning with this year. Fifty
important parts have been reduced 33
per cent. Some parts show prices cut
| in two.
Dealers have better repair shops. And
they are selling better used cars than
they did in the old days. 1t will always
be necessary to sell some used cars
las is''-that is to say, without re-
building them. These are exceptional
cases, however. In future you will find
that most dealers are standing back OF
their used cars. They rebuild what used
cars they take in trade for new ones
and they turn out car that is sure
to be worth every cent paid for it. AS
time goes on IL will be found that the
leading new car dealer In any COM
munity is the dealer who leads in the
sale of used cars To maintain leader
ship in this wise a dealer must be re-
| liable and anxious to give real service.
| I believe the public realizes that the
| cars TO be made and delivered in 1929
! will be the best the industry has ever
produced. Naturally there have been
improvements and rcfinements as the
evolution of the modern car has gone
] ON. That is always 10 be expected.