Evening star., 1922-02-12
MANUFACTURER DEVISES PLAN
TO ELIMINATE USED CAR. EVIL
Proposes Formation of National Company
Which Will Buy, Sell and Recon-
dition All Old Cars

make Of car handled by the dealer.
The dealer also explains to the GUS
toner that many other dealers in the
same town have a similar arrange
toner take his old car to the National
Used Car Company.
Experts Appraise Car.
when this is done here is what
will happen: The customer comes in
and with an old one to trade in. He
asks the dealer for an allowance on
the old car. The dealer explains Used
Car Company. where an expert used
car man will appraise his car and
make him an offer of purchase. II he
chase of the National Used Car Com
pany. he will leave his car, accepting
in return therefore a certificate Of
value for the amount agreed upon.
This certificate Of value will be good
for the amount specified toward the
bile made by manufacturer coop
Grating in the plan. When the GER
tificate of, value Is accepted by the
new car dealer and the sale of the
new car Is consummated, the National
Used Car Company will give the deal
value negotiable note of equal
value. This note can be indorsed by
the dealer and used at his bank, as
he has made Of it two-name paper.
When the used car is sold the note is
to be redeemed instantly, and from
this point the deal is to be financed
entirely by the National Used Car
Company. A successful operation of
this plan will entirely finance the car
inventory of the National Used Car
Company.
Will Not Restrain Trade.
"Inasmuch as these cars will be
purchased at the real market value
and sold at a profit. the National
Used Car Company will surely have
used car dealers. II the owner does
not care to sell his car to the Ma
tional Used Car Company, he will
have the used car dealer to whom he
can sell. and in addition any indiyid-
, ual prospect he may have for his car.
1t will not be undesirable for the
competitive used car dealer to pur-
chase the car. as that will entirely
relieve the new car dealer of financ-
! ing the used car.
This does not restrain trade in any
manner, g the prospect has various
channels through which he can sell
| his used car. and there is no inten-
| tion whatsoever of forcing the owner
| to sell his car at less than market
| value. Neither will there be any
agreement entered into on the part
| Of the manufacturers or the dealers
| collectively to force the operation OF
| the plan. What is said in each in
! stance by the manufacturer to the
| dealer will be simply an expression
of the individual judgment of the
| manufacturer.
Commissions to BE Paid.
! "The National Used Car Company
will sell'its cars at cost. plus recondi-
tioning, plus sales expense. plus a
normal profit. A commission should
be charged the dealer for the sale
of the used car. This commission
should be the same as paid the new
car salesman. The new car sales
| man will receive. as is customary to-
day. commission on the amount OF
| cash received, and the National Used
| Car Company will receive a commits.
| sion on the balance involved when the
| used car is sold"
| Mr.. Brooks suggests financing the
| corporation by having the manufac-
| turers subsidize 1t to the extent of ]
per cent of the net value of their
| products until the company is on a
Sound financial basis; also to call on
| the dealers for funds. but he believes
the financing could be, easily accom-
plisSed where the benefits are Sc
great.
The new plan also involves a ma
tional advertising campaign to sell
! the public on the new method OF