Evening star., 1947-05-26
HIe Of Buyers Names
Helps Detroit Check
Used Car Racket


DETROIT, May 26 (NANA).-
Everybody in Detroit talks about the
'used-car racket" But the Detroit
Auto Dealers Association is doing
something about it.
when the automotive triple play
agency to buyer to used-car lot
fist threatened to become scandal
obs, the association invited all ag-
ehcies in greater Detroit to submit
the names OF prospective new car
buyers on their waiting lists for al
phabetical filing. Duplicate buyers
orders were clipped together, with
the result that the association uses
almost as many paper clips as the
quartermaster general
! Some Of the least scrupulous deal
ers refused to cooperate. But the
hesiiits were still enough to curl
ones hair.
: 1t was found that per cent Of all
purchasers Of 1916 automobiles were
duplicate buyers, some having
bought as many as eight new cars.
OF names phoned In subsequently
for checking against the file, 20 per
cent had bought more than one car.
OF eight names phoned in by one
dealer, five had had previous cars
within the year and three Of the
five had bought two each. This
dealer handled one Of the highest
priced cars on the market, on the
Strength of which fact the associa-
tion warned dealers not to suppose
their customers were too high a
type to resell their cars"
oPA Attorney Trapped.
The buyer alphabetical file was
the trap that tripped up an OPA
attorney who had talked himself
In and out OF IA new cars within
the year.
The association urges every dealer
TO check the file before delivering
q car and If the buyer is repeater,
find out what happended to his
previous purchases. The trail almost
Invariably leads to Livernois ave-
nue's used-car lots.
Regrettably, one of the worst Of
tenders as q class Is the veteran. 1t
dries up something inside the deal
er, as well as his factory executive,
to learn that the former seryiceman
he favored above all the rest wanted
the profit and not the car.
On the other hand, it does some
thing to the well-intentioned citizen
to wait q year or two for his car
while his dealer SUPPLIES favored buy
ers who in turn supply Livernois
avenue.
Factory Sales Another Factor.
Another factor in the racket, and
this, too, Is a touchy subject here,
is direct factory sales to automotive
workers. This privilege is written in
union contracts. Usually the worker
Is entitled to one car year at
discount up to Is per cent based on
seniority.
Detroit dealers feel that they were
imposed on in prewar days because,
they assert, their factories loaded
them down with cars in order that
Ford would not exceed Chevrolet,
and vice versa, in Wayne County
(Michigan1- registrations, the indus
try's most jealousy watched yard
stick. AS a result, although Detroit
dealers outsold Cleveland agencies
by 100 per cent, the Detroit profit
was said to be the lowest of any
area in the world.
Many dealers were satisfied with a
S25 margin per sale; the permissible
dealer profit today ranges around Is
per cent. Some dealers actually sold
at loss in order to reach point
in total sales where they collected
a retroactive bonus on the years
entire sales.
However this may be, Wayne
County dealers are reaping the
profit today, what with their high
quotas Of deliveries. their sellers
market and their various and sun
dry ways of adding a few dollars
here and there If they are so in
clined.
Michigan Law Lax.
Michigan law at best permits a
slap on the wrist for the worst evils.
Michigan citizens can buy and sell
an unlimited number of cars If they
can find them. Dealers associations
are pushing for transfer tax to
be collected on sales between indi-
viduals.
Although agencies and Livernois
used-car lots get the publicity. the
great bulk of title transfers here Is
from John Doe to Mary Roe. The
last check-up showed that new-car
dealers made per cent and used
car dealers 80 per cent of used-car
sales. individuals accounted for the
remaining 64 per cent.
The one regulation on the sub
ject makes 1t mandatory to trans
fers between individuals for the
buyer to swear that he is not in
the automobile business and ask
exemption from: sales tax.
Because the volume is great and
transfers casual Michigan regis
trations are inclined to be loose.
All titles are cleared through Lans-
ing. which is many weeks behind
in its work. A Livernois practice Of
tossing license plates about as
though they were so many sheets
of tin makes back tracing well nigh
impossible.
NlI ell n