Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-23
USED CAR STOCKS
SLOWLY DECLINING
Dealers Reported Making
More Money on Recondi-
toned Machine Sales.

Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 23.-Used car
stocks in the automobile industry, like
dynamite. have potentialities for great
danger and great use, but the stocks
Of used cars now on hand are not
frozen" and leaders in the automobile
business believe they can be used with
handling. Stocks are slowly getting
back to normal, although the journey
may last well into 1880. Used car
stocks, which were increasing fort
night ago at q rate which caused
uneasinesS, now are showing . more
satisfactory tendency.
Reports Just received from IS cities
show stocks of used machines increas-
ing in IA localities, holding level in 7
and declining in 4. Other reports show
stocks high in 20 centers, normal in 10
and low in /. Sales of used ears have
not dropped Of at corresponding rate
with the sales OF new units. There has
been an upward trend In used car sSles
in 8 centerS reported. with an opposite
move in IL, while Z are on an even
basis.
Sales Above Production.
Dealers are making the most Of the
situation by free use of advertising and
stimulation of sales effort. Pending the
introduction Of new models in early
January, many manufacturers have cut
down new car output and sales of both
used and new cars are apparently well
above the new car production. Dealers
therefore are going after this imme-
date business with used cars and max
AIahnYota ~
the rejuvenated vehicles.
Trading down" is what automotive
specialists say has caused the piling up
OF used car stocks. In early 1929, new
car business was so bright that dealers
not only gave enhanced trade in values
on used cars, but were so busy going
after the new car business that not suf-
flcient sales effort was directed toward
disposal of used models. When the two
sales efforts are properly directed the
authorities declare there can be and Il
an excellent opportunity to give manu-
facturers q satisfactory amount Of new
car business and still permit the dealer
an excellent profit with the use of used
cars to help him out Such an adjust
ment holds the dollar value of used Cal
business within reasonable limits and
prevents the pyramiding Of used Cal
stocks and losses. The danger lies In
the dollar value OF used car business
rising above the proper relation to the
dollar volume Of new cars disposed Of.
Better times are In store for the deal
er, according to the head Of one Of the
leading automobile sales financing cor
pofations in mid-Atlantic territory to-
day. He declared the manufacturer had
been too autocratic with the dealers In
the matter of assigning quotas to each
and in making 1t almost compulsory tc
take q certain number Of models when
the dealers trade called for other types
He added that the dealers In some
cities were plastering their Windows
with offers Of 1919" cars. This, he
added, gave . wrong impression o. Il
the business and financial situation In
general. He concluded with the state.
ment that the number of repossessec
! cars was far smaller than was antici.
pated In view Of the recent stock market
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