Agents' Commision on Sale of New Cars

Sir,
Could somebody in the trade enlighten me as to the reason why agents receive what appears to me wholly unjustified and exorbitant commission on the sale of a new car ? As an example, the purchase tax on an M.G. Midget TF two-seater is £230 5s. 10d. from which I deduce that the manufacturer’s wholesale price is £460 11s. 8d., making a total of £690 17s. 6d. As the list price for this car is £780 5s. 10d. a nice little profit of £89 8s. 4d. is apparently left for the agents. Since in most cases there is still a long waiting list for the majority of popular cars, the agent is not left with unsold models on his hands. What service to the buyer, or even to the manufacturer does the agent provide for this commission? If anyone mentions “After-Sales Service,” pardon me while I muffle a guffaw !

Don’t you think it is time the motorist had a real union to represent his interests ? I don’t class the A.A. or R.A.C. in that category ! If there had been a motoring association with any guts in existence, the agents would have had to cut their commission and the Government would have also had to cut their blood-sucking petrol-tax and purchase-tax long before this. Moreover, the roads would not be the potential death-traps they are now. If you ask me how this improvement in the motorist’s lot would have come about, I will reply that with the encouragement of a strong union, three million private motorists would have refused to licence their cars, or buy new ones, until they had received a square deal. What suckers we motorists are !

I am, Yours, etc.,

Stanmore. J.M. Martin.