Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-15
USED AUTOS HELD
WORLDS PROBLEM

Continued from Fifth Page)
tied with the custom of making too
large an allowance for used cars, In
fact more than any other geographical
area in the world. Chile is meeting
the situation by forming large or
gani2ation for the sole purpose of pur-
chasing and reseiling used cars. while
Peru stands out as the country not yet
having a used-car problem.
Refuse to Take Used Cars.
In that country the dealers fatty
refuse to accept used cars In part
payment for the new ones. while deal
ers in Venezuela are reported to be
reluctant to accept used cars for the
larger and high-priced makes as trade
ins at the figures which their owners
feel they are worth, as they are very
difficult to dispose Of at any price,
owing to the general preference there,
as in Rumania for the new models.
Australia is one of the countries
where the car owner. desiring a new
model. is getting almost what he wants
for the old one. The market has been
quite dull, and the dealers are making
large allowances in order TO move their
stock, and are giving almost any rea-
sonable term to purchasers for the used
cars.
In japan II is reported that the deal
ers are having practically no difficulty
In moving their used. lightweight
American cars. but few of the deal
ers also are reported to have been MAX
ing too generous an allowance for the
used cars and are having difhculty
moving this stock without taking loss.
Morocco is having difficulty, also. be-
cause of the large trade-in allowances,
but on the other hand. New Zealand
is awakening Local firms there are
beginning to realize the fallacy OF
granting exorbitant prices on trade-irs.
Although the sale of new cars is SUI
fering as a result of this enlighten-
ment, the dealers are said TO be on
much solnder economic basis than
they were six months ago.
Some idea of the saturation point
in the automobile industry for the
world. and for certain specific areas
would not be inappropriate here as IN
dicative of the necessity OF getting
some of the used cars out OF the chan-
mel of trade, If the industry is to thrive
as 1t has In the past few years OF It's
history
Bureau Chiefs Report.
n. O. Smith. chief of the automotive
division of the bureau Of foreign and
domestic commerce. says that the world
motorization has outstripped the popu-
Iation increase Figures compiled by
him show that three years ago 1t was
estimated that the world ratio OF people
to the automobile. as of January !,
1926, was II to /; year later. the gap
had narrowed to Sc to /, and at the
beginning of 1928 with an estimated
world population of 1000, 100000 hui
mans and about 29,700 900 automobiles,
the new ratio became 81 persons to
each automobile.
The influence of the high per capita
registration OF automobiles In the
United States, he says. is evidenced In
the fact that, whereas In the world as
a whole there Is one automobile to each
81 persons, when the cars and people In
the United States are not taken into
consideration. this ratio becomes one
automobile to each 277 persons.
The extremes of popular reception
of automotive transportation are found
In the United States. where the ratio
is one car 10 each small group Of five
people. and In Ethiopia. where the
presence of only 100 automobiles and
abou. 100000 inhabitants makes the
ratio Of one automobile 10 each 81, TAB
people.