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USED CAR PRICES

THE “WINDSOR” PLAN Somewhere in the United States we came across a new disguise for an old familiar figure, the “repossessed car.” Which, however original, is only a clumsy effort to evade the second-hand car problem that is exercising the world. For ourselves, we have never liked the “used” car, preferring to call a spade a spade. But the term is widely favoured, and, not to further complicate a situation which already is sufficiently involved, may be accepted. The crux: of the used car problem, of course, is the difficulty of arriving at a satisfactory valuation of the old car when it is desired to exchange it in part payment for a new one. In Canada and the United States considerable success in this direction has been achieved by what is known as the “Windsor Plan,” and this plan is now under consideration for adoption locally. The “Windsor Plan” seems to have been first advanced by a Canadian automobile journal, and was originally tried out in Windsor, Ontario; hence its name. Its underlying idea is to inform the public on used car values by publishing the local re-sale prices of second-hand cars of all makes, years, and models. Published prices, it is argued, govern the purchase and sale of all common commodities. Most corporation stocks are listed on some ex-

change, purchase and sale following the publication of prices. The purchase of an unlisted stock is a more uncertain deal, as there is no basis for determining either a purchase or re-sale price. Ordinarily an owner wishing to exchange a used car for a new one has no means of establishing his proper allowance. The Windsor plan gives him the information in Which he is ininterested, and to which he is rightly entitled. This is obtained by striking an average of all allowances made on cars of like description by motor traders in the district over a period (usually a month). Used car appraisal is on this basis, less the necessary expense of handling the customer’s car. The scheme would seem to operate fairly to both buyer and seller. The car dealer cannot afford to put his prices too low. Conversely, if as a sales argument for his own cars he inflates his used car prices he will suffer, because his second-hand car stock will increase, or he will be unable to dispose of it in competition with other similar makes more reasonably priced. Organisation for the introduction of the Windsor plan for dealing with used cars is already advanced in Auckland. Motor traders throughout the Dominion are co-operating in this scheme and the Motor Trade Association, is issuing data sheets to all members who deal in second-hand cars. These will be returned and standard price charts will be compiled from the information. The M.T.A. has circularised 633 garage proprietors requesting details of all second-hand car sales for November and December. Figures reveal that during November 492 cars, valued at £53,327, changed hands.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/SUNAK19280124.2.38

Bibliographic details

Sun (Auckland), Volume I, Issue 260, 24 January 1928, Page 6

Word Count
496

USED CAR PRICES Sun (Auckland), Volume I, Issue 260, 24 January 1928, Page 6

USED CAR PRICES Sun (Auckland), Volume I, Issue 260, 24 January 1928, Page 6