Evening star., 1924-01-20
USED CARL0SSES
S5O,0lO,o)0 LESS
Automobile Dealers Report
Fewer Sacrifices in 1923,
Compared With 1922.

Automobile dealers reduced their
used car losses $4,000, 600 in 1928
over the losses suffered In 1922, ac
cordIng to c. A. Vauc. general man
ager of the National Automobile
Dealers Association, who Will present
an analysis of the used car situation
to the seventh annual convention of
the National Automobile Dealers As
sociation at Hotel La Sale, Chicago,
January 1881. The meeting will be
open to all dealers of the United
States. Special reduced rates of fare
and one-halt have been granted by
the railroads to members of the as
sociatiou.
I'VE estimated that the dealers of
this country In l92" lost 100000 900
on used cars, said Nane. "and that
loss is representeu only by tho diff
ference between the price at which
the dealers bought the used cars and
he sum for which they sold them,
and does not take into consideration
the sales, reconditiontnS and over
head expense.
See Cpbusincssltkc Methods.
"Thio year as a result OF the awak
en!ng to the peril involved in un-
businesslike methods of making used
car purchases. the dealers succeeded
IL getting their used car purchases
st a hgure $4,000, 900 lower than paid
2or used cars last year.
Few people realize the enormous
burden imposed upon the dealer
structure by the used car.
For example, 1923 new car pro-
duction was approximately S.750.o00
motor vehicles. Probably 100000 of
this number were passenger cars, and
SO per cent of the new car deals han
died involved the trsde-in of used
car. IN other words, the dealers
handled 2,T0o.000 used cars in order
80 handle 100000 new cars, a total
Of 100000 passenger car transac-
tions for the year
1T is ostensible that dealers can
not handle 100000 used cars and
suffer loss of anywhere from $50
20 S400 per car depending upon price
Class). and remain in business. II
the public realized the Importance. of
the dealer in the service after the
sale it would appreciate that such
tactlcs are against owner interest, in
chat it destroys the possibility of the
1saler building up all organization
"'hich can properly serve the Gus
TONER'S car after 1t is purchased as
= new vehicle
Cars Bought for Their Utility.
The tremendous transactions in
rsed automobiles also indicates that
the public is more and more buying
automobiles for their utility. and that
the public Is thoroughly sold on the
Idea OF the automobile as personal
transportation.
Time was when buyers heSitated d
or account of pride to buy a used
sutomohile, but pride OF possession
IS no longer the controlling factor
that il was in the early days of the
automobile. The used car buyer
knows that every automobile on the
street Is q used car, that the moment
that a new automobile has been
driven around the block it has be-
come q used car, and as conse-
1ueace, dealers no longer find per-
sonal pride an obstacle in disposing
% used motor vehicles"
During the past year Vane has COW
sEed $4,000 miles addressing meetings
OF dealers. statesmen and service men
On problems with which the industry
10 contendins, and some of the re-
suits Of that trip will be detailed
by him at the annual convention.