Evening star., 1948-11-12

Backs Reporton
|GougingC
Head Of D. 6. Group
Urges Correction to
Cut New-Auto Prices

A Washington used car dealss
today supported the findings Of q
House subcommittee that Washing
ton car buyers have been gouged
for $4,400, 900 in unwanted accesso-
ries and undervalued trade-ins.
William D. Griffith, president Of
the National Capital Used Car Deal.
ers Association, said that until prac-
tices are corrected, 'the price of the
new car will not come down"
His statement conceded with these
other developments in the inquiry
by the House Subcommittee to In.
vestigate Questionable Trade Prac-
tices, headed by Representative
Macy, Republican. of New York:
l. Franklin j. Bruzbart, manager
of the personal services department
of the American Automobile Associ-
atoms District division, applauded
the committees investigation and
said losses to car buyers will un-
ooubtedly total well over S6.000.0 900
by the time 1948 has ended"
Dealers Planning Statement.
2. New complaints will be aired
when the House subcommittee re-
sumes hearings at 10 am. Monday
With several witnesses scheduled to
testify.
3. Earle o. Baker, president of the
Washington Automotive Trade AS
sociation, called a meeting Of key
association officials for pm. today
in the Chandler Building to prepare
statement to be given the House
group Monday. Spokesmen for the
association have branded as unfair
the committee charges.
! Mr.. Griffith said new car dealers
"load up the new car with from
$500 to 5000 worth Of accessories, 50
per cent of them unnecessary" and
that "tradeins are undervalued at
least $500 to $780,"
Until this is corrected" he added,
the price of the new car will not
come down to the consumer. In
the past, the new car dealer has
had the fortunate position that he
can sell the car to the used car
dealer for more than he took in
for 1t. But we find today that the
price we can get from the public
does not justify the price We have
been paying. Therefore. we are
. bidding less for used cars and SELL
ing them to the public at lower
prices"
1 Major Complaints Cited.
Mr.. Bruzbart said the committees
announcement that car purchasers
in the Washington area had lost
nearly four and a half million dol.
lars in the first seven months OF
this year comes as no surprise to
u"
He cited four major complaints La
the sale of cars:
/. Failure of some dealers to de-
liver cars on the basis Of priority
Of orders without valid reasons for
such failures. -
2. Overlooking OF new cars with
unwanted accessories.
8. Refusal of some dealers to sell
new car unless an automobile 10
traded in. and giving unjustifiably
low trade-in allowance.
4. The widespread availability OF
1s47 and 194S models on used car
lots at "exorbitantly marked-up
prices"
Full Report to be Drafted.
I'VE are still urging motorists not
to pay sky-rocket prices and at the
same time let the old-family car go
for nothing or for the proverbial
song" Mr.. Bruzbart remarked.
The House group is expected to
draft a full report later this month
into the new-car situation here as
the first phase of its investigation.
John T. M. Reddan. COMMITTEES
counsel, said attention probably will
be turned later to the used-car
market.
The Monday hearing will be held
in Room 1902, New House Once
Building.