Evening star., 1948-04-18
Auto Dealers, Fighting
ID. T.. Black Market,
Keep Titles 6 Months
Corporation Counsel
Approves Conditional
Bill of Sole on New Cars

Washington automobile deal
ers are trying to stop the sale
of new cars as used cars by
keeping the title of each new
vehicle in the selling dealers
name for six months after the
auto is sold, it was learned yes
terday.
This attack on the so-called auto
mobile black market here has the
approval of the corporation coun-
sci, Washington Automotive Trade
Association spokesman said.
As long as the dealer retains the
title, the purchaser is baked in his
efforts to transfer the car to an
other. The Department of Vehicles
and Traffic will not pass car with
out clear title.
Dealers are now making car pur-
chasers sign a new conditional bill
of sale" before new car is de1v-
cred. BY that means, the dealers
retain the title.
Some Buyers Won't Sign.
Several dealers have reported that
purchasers who pay cash for their
cars are refusing to sign the condi-
tional bill of sale. In turn, the
dealers are refusing to deliver the
cars.
While most of the dealers have
adopted this method to prevent new
cars from getting into the black
market, the trade association said,
some dealers have not.
Oficials of the trade association
say a dealer is subject to stiff
penalty from the manufacturer If
one of his new cars is discovered
on a second hand dealers lot.
The new bill provides that "the
purchaser shall have no right to
sell said vehicle, or his interest
therein or to transfer possession,
except to seller and under condi-
tions hereinafter set forth for a
period of six months" If the pur-
chaser of a new car finds himself
in need of money he can sell the
car back to the dealer at 80 per cent
of the purchase price. He cannot
sell it to any one else.
Repossession Provided.
The sale bill also provided that
"in event the purchaser sells or at
tempts to sell his interest in said
vehicle or transfers or attempts to
transfer possession thereof in vio-
lation of this agreement. seller may
forthwith repossess said vehicle with
or without legal process
While some legal authorities claim
this new legal instrument will not
hold up in court, it has been passed
on by Vernon West. Corporation
Counsel for the District. Mr.. West
said the trade association presented
him with one bill of sale but that
he ruled it would not be possible
to record it. The association then
drew up the present bill which he
said might do.
officials of the trade association
said the black market here was
not as bad as it is in Detroit, but
lit was bad enough to be reckoned
with. They say new cars are not
only being purchased for use in
the United States but also for ship
ment abroad, where they bring
fantastic prices.
Export Refused Woman.
One dealer said a young woman
purchased a high-priced car from
him and in few weeks returned
and said she had been ordered
back to her country for business
reasons. She said she wanted the
car registered in her name so she
could take it with her. The dealer
refused. He told the trade asso-
citation officials she could have made
$40 900 on the car if she could get
| it into her country.
The first cars registered here
with the new conditional bill of
sale" appeared at the Recorder OF
Deeds Office in the Vehicle and
TRAFFIC Department here last week,
and the new sale bill has been
recognized as legal document and
filed.