Evening star., 1950-11-13
Dc. Heads Hear
Debate on Rules
For Auto Sales
Dealers and Buyers
Testify on Proposed
Changes in Statute

eStiIy OF TfOPoSeu
Changes in Statute
New rules for District auto
dealers which would take the fine
print out of sales contracts anc
let buyers know just what they
are getting for their money were
debated at hearing before the
Commissioners today.
The regulations, proposed by
the District License Committee
would require new and used Cal
dealers to give customers complete
written statements setting out
clearly all charges for purchase
on time basis.
Witnesses at today's hearing
represented dealers and con.
sumers' organizations. In theil
varying opinions, the majority
agreed that some sort of regula-
tionS were called for, but sug-
gested amendments to the pro-
posal of the License Committee
Others were opposed altogether
Complaints Cited.
AS explained by Chester Gray
assistant corporation counsel, the
new rules were drawn up in an
swer to complaints from many
people who had bought cars on
time. The trouble, he said, was
that buyers thought they were
paying the advertised price of the
car. but later found they had
signed an agreement to pay ''sev-
eral hundred dollars more than
they thought" d
The regulations would require
dealers to furnish all customers
with written statements including.
/. Description of the vehicle
sold.
2. Cash sale price of the vehicle
sold.
3. Amount of cash down pay
ment made by purchaser.
4. Amount credited purchaser
for any motor vehicle he turns in.
S. Total cash price balance.
Fees to Dealer.
6. Reserve or commission or
whatever fee commonly called a
"kickback") is to be paid the
dealer.
7. Cost of insurance and sum-
mary of insurance coverage.
8. Amount of finance charges.
g. Amount of any other charge
or charges.
10. Total time balance due from
the purchase.
II. Terms of the payment OF
such time balance.
The regulations call for the
statement to be made in tripli-
cate-one copy for the customer.
one for the dealer and a third
to be filed with the Recorder Of
Deeds. Violation would bring a
maximum penalty of $500 fine or
80 days Imprisonment and would
be grounds for revocation of the
dealers license.
The most controversial items as
brought out at today's hearings
involve the statement of reserve
fees and cost of insurance.
Calls 1t Unreasonable.
William H. Emerson, president
of the Washington Automotive
Trade Association, representing
more than 80 per cent of the Dis
trict's new car dealers and SO per
cent of the used car dealers, said
the disclosure of the service
charges is "of no consequence to
the purchaser, unreasonable and
unjustified."
"It would be just as reasonable
to expect the dealer to tell the
purchaser what he paid for the
car" he said.
In ordinary cases, he added, q
dealer would not know which COM
pany would accept an insurance
policy on the car at the time OF
sale, and would not be able to give
the customer more than a state
ment of intent on the proposed
insurance coverage.
The requirement that the details
of the sale should be separated
from the traditional sales contract
Is unnecessary, he said.
Lichtenberg Is Critical.
Another witness highly critical
of the proposed regulations was
William R. Lichtenberg, represent
ing the National Capital Used Car
Association. He told the Com
missioners the only point of the
proposed regula tions is ito clearly
differentiate between cash price
and time price" and that the other
requirements would be an un-
necessary hardship on dealers.
He told the Commissioners they
Shouldn't penalize a whole in
dustry for the defalcations of a
few and suggested the dealers
should not be singled out while
other goods sold on time are left
unregulated.
Generally favoring the provi-
sions of the proposed rules were
spokesmen for the District Bar
Associations Small Loan Com
mittee, the American Automobile
Association, the Board of Trade
and the Federation of Citizens
Associations. All, however, sug-
gested some minor changes.
The entire matter drew the
angry opposition of c. E. Sim
mons, president of the Property
Owners Association of America
who said:
"If a person has enough
money to go out and buy a car
or truck he's sure to have enough
sense to know what he's going to
pay for it,"