Every evening, Wilmington daily commercial., 1922-05-01

hiclea would not be near enough At
hand for the dealer when his market
opens up.
The development OF the merchandise
ing methods for motor vehicles to In
clude sales on credit Is logical. and the
practice Ia growing Of retailing on de-
ferred payments; n portion down and
the balance distributed over sub
sequcnt period. Provided the credit
il extended on proper basis, this
practice becomes a natural develop
ment of the market for motor cars.
Purchase by dealers for the purpose
OF stocking cars and the policy OF SELL
ing on dtferred payment plan re-
uuircs larger financial resources tnan
the average dealer possesses. He must
look to other sources for the necessary
funds. The local banks are not equip
ped TO handle the specialized credit re-
auirements involved in automobiie
financing.
General Motors Corporation recog-
nizing that its manufacturing divisions
had been hampered by the factors
enumerated, organized the General
Motors Acceptance Corporation.
The GMAC Wholesale and retail
plans for financing sales of General
Motors products are available through
out the United States, Canada, Great
Britain and Ireland. In addition,
through its foreign department, the
operntions extend to every part OF the
globe where motor cars are used In
quantity.
Volume Of Sales.
! Mr.. du Pont, In his letter, points out
that the GMAC Plan has been an Inn
portant factor in furthering the sales
OF the products OF General Motors Cor
poration. II ia interesting to note that
from inception, early in 1919, to Apri
|. 1922, there have been financed un'
der the GMAC retail plan l46,s37 cars
trucks and tractors. and 102,014 cars
trucks and tractors under the whole
sale plan. This does not include other
General Motors products financed. noi
3 the operations OF the foreign depart
ment.
/ Under the GMAC wholesale plan
/ General Motors dealers. after credit
i has been established. may purchas,
new passenger cars. commercial We
/ hicles and power farm implements by
paying a small amount in cash. tho
balance is payable AS the machines
are released or at an agreed date ar
ter shipment. Under the GMAC retai
plan General Motors merchants may
sell a Buick. Cadillac, Chevrolet, OAK
, land. Oldsmobilc. GMAC Truck. sam
son Tractor or Delco Light System, e
customers in good credit standing. The
purchaser pays a portion in cash ant
gives an obligation for the remainder
payable In equal monthly installments
In the case Of farmers final paymen
: can be arranged to correspond with
the sale OF his crops.
Here is an example OF how the re
tail plan operates. \ man buys a new
5-passenser touring car for. say sl62'
and pays se25 cash. The balance o
$1,000. plus the charges, he pays in
say. ten equal monthly payments. Th'
GMAC difrercntial, covering interest
inv NssStigation. collection and servic
charges. would be $50. The purchase
therefore signs a note for $1056. pay
able in ten equal monthly payment
~ slO5.6O per month. The deferret
payments are made by the purchase
direct 10 the Acceptance Corporation
thu. relieving the dealer OF collection
details.
Rank In the Banking Field.
l. will doubtless surprise many peo
pie. Mr.. du Pont says, even those il
the banking field. TO learn that Genere
Motors Acceptance Corporation nov
ranks one hundred and twentieth
among banking institutions in tn
United States from the viewpoint @
capital, surplus and undivided profits