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Auto Dealers Form Association, 1925

In late 1924, a number of Lykens Valley automobile dealers decided that they had extended too much credit to customers and were suffering heavy losses from defaults. The individual dealers decided that they would organize and form a group that would operate on a “cash only” basis. There were many dealers in the area and it not known from this news article how many actually joined and whether the association was successful. The announcement was made in the Lykens Standard, January 1, 1925:

AUTOMOBILE DEALERS FOR ASSOCIATION

An organization known as the Automobile Dealers Association has been formed by the Automotive Merchants thruout this section of the State. The purpose of this organization is to entirely eliminate the extending of credit.

All automotive dealers are required to pay cash for all cars, parts, tires, accessories and labor. The credit privileges extended the general public have been sorely abused, inflicting a heavy loss on the garages and accessory men.

Beginning January 1st, 1925, all Automotive Merchants holding membership in the Automobile Dealers Association will be runing on a strictly cash basis.

It is not the intention of this organization to embarrass its trade. Therefore all dealers running their business on a cash basis and holding membership in the Automobile Dealers Association will display prominently in their place of business, signs acquainting the trade of their membership in the Automobile Dealers Association, so that the trade will know in advance and save themselves the embarrassment of being refused credit.

___________________________________________

News article from Newspapers.com

Corrections and additional information should be added as comments to this post.

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