Evening star., 1948-11-30
Dealer Reveals
New Method Of
Diverting Autos
Old Customers Got
Many Demonstrators
House Probers Told

The story Of an Arlington
Chevrolet dealer who designated
a large percentage of his new
cars as demonstrators" so he
could sell them to old customers
ahead of others on his waiting
lists was developed today before
a House Public Works Subcom-
mittee.
On the stand was Lawrence Ken
yon, vice president and treasurer OF
Kenyon-Peck, Inc, 1926 Wilson
boulevard.
He told the committee frankly the
demonstration car plan had been
adopted by his company when man
ufacturers began to send through
new cars. He said the practice was
abandoned last August when
spokesman for the Chevrolet Divi-
sion of General Motors advised him
that it was contrary to General
Motors policies.
The current set of hearings on
alleged abuses of new car customers
by dealers was ended shortly before
noon when the subcommittee con.
cluded examination of the Arlington
case.
More Hearings Planned.
Chairman Macy of the subcom-
mittee thereupon announced that
one or two pore series of hearings
would be held, to go into other
phases of new car dealings in this
area. He disclosed also that SUBJ
committee investigators have been
at work in New York and some
other places in a development OF
leads growing out of the Washing
ton hearings.
The chairman found that the
hearings had had salutary effect
and predicted that the buying pub
lie was becoming more wary" as q
result of subcommittee disclosures.
He added that it seemed to him
the results of the hearings prob.
ably have had more effect on un-
ethical practices than control legis-
lation would have had.
The facts developed, however, he
said, have indicated a pattern of
rather prevalent practices and
would be useful to the committee in
the drafting OF legislation. He did
not say what final recommendations
the subcommittee might make.
Buyers Tell Of Waiting.
The hearings bepan fvo weeks
ago and were resumed yesterday
when a parade of witnesses told
their troubles to the committee.
They related to urlder-valued trade
ins and unwanted accessories.
Buyers charged that dealers made
them wait many months for new
cars and one dealer admitted he
took care of" his friends. The tes-
timony on the trade-in cars brought
out that in some instances used
cars were sold on the market here
for higher prices than new. cars Of
the same make.
Chairman Macy said the commit
tee went into the demonstrator SUBJ
ject today because the plan was
very unusual"
Statistics Submitted.
Mr.. Macy said studies by the sub
committee investigators indicated
that 10 per cent of the cars allocated
to the Kenyon-Peck company had
been designated as demonstrators
and ultimately sold to customers
after having been driven from 2
to 80 days.
John T. M. Reddan, subcommittee
counsel, said the investigators found
that of 221 cars sold by the company
in the first seven months Of this
year, 1856 or 70.5 per cent were sold
through the demonstrator method.
He added that while trade-ins
were involved in 10 per- cent of the
total of 221 sales, the percentage
of trade-ins in the cases Of the So
called demonstrator cars taken alone
was 81.4 per cent.
Mr.. Kenyon agreed this was the
case generally and said it was i'm
portant to the company to try to
even up our business" with profit
able deals when he could. He put
it down as simply a business
proposition"
Says Accessories Were Pushed.
The witness told the subcommit.
tee his firm used recognized hand
books as a guide to the valuations
placed on traded-in cars. Most Of
the trade-ins, he said. were resold
to dealers.
He was questioned also about ac-
cessorieS. He said his company
tried to "sell every last dollar Of
accessories" where it could and that
if extras were sold they then were
installed on the cars.
On this point Mr.. Reddan said
he had found the Kenyon-Peck
company among the lowest in its
record of extras put on cars, in
relation to operations Of other firms
studied by the subcommittee.
Mr.. Reddan said the extra and
optional equipment placed on each
car sold by Kenyon-Peck averaged
$142. This figure is considerably
(See AUTO SALES, Page A-40
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