Used Car Boom!
Used car prices this week are up 5 to 15% since January 1. People who bought used cars last August can usually resell them, provided the tires are good, for 10 to 30% more than they originally paid, and they will have had six months driving free.
In almost every deal rubber is the No. 1 price factor. Used cars with extra good shoes bring $50 to $100 extra; cars with bad shoes are not wanted at all. Quipped a Detroit Ford dealer: “You would think this salesroom was a mosque to see all those guys down on their hands and knees looking at tires.”
In San Antonio, 1939 model Chevrolets are fetching $595, against $495 a year ago; 1941 models are worth their original prices. In Detroit any good 1940 model sells for only $100 less than it cost new; 1941 jobs show no depreciation.
In Baltimore an auctioneer last week put an almost new 1941 model on the block, without a word caressed its big, wonderfully thick tires. It brought $1,600-$100 over the new-car price. Older models formerly selling for 50-$100 are now stripped of their tires (and sometimes upholstery), sold as junk.
One reason used-car prices are up is that only 145,000 new cars will be rationed through May v. 1,450,000 sold in the same months last year. A bigger reason is that dealers smell sweet profits. With trade-ins down, along with new-car sales, they are satisfied not to sell unless they get their pound of coin. Consequently used-car sales volume has flopped.
In Atlanta a big Chrysler-Plymouth dealer sold only 20 used cars in February, 70% below normal; the First National Bank reported used car financing off 80%. In Texas, February sales were down 50%. Chicago’s 265 big dealers have sold so few cars since Christmas that stocks last month hit 10,481 an alltime record.
This article is care of Time Magazine…printed 3-16-1942. Yes, you read that right…1942.
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