Go see Cal? No, go see Unocal.

Go see Cal? No, go see Unocal

Unocal Corp. may change the pricing structure of used cars in Los Angeles. Now all junkers not great and not small are worth $700 - what Chairman Richard Stegemeier will pay for pre-1971 Southland vehicles.

Unocal's South Coast Recycled Auto Program will buy 7,000 of the 410,000 pre-1971 vehicles in the Los Angeles basin.

Cal Worthington looked at the whole thing from an economic perspective, not to mention a horse trader's perspective.

"It will certainly jack up the prices of the remaining old cars out there," said Worthington, who owns a string of dealerships on the west coast. "I'd guess it will create a dramatic swing in prices...It will also definitely make them the number-one buyer in that market for cars. There are a number of dealers who make their bread and butter selling lower-priced cars. If the cars become scarce, they'll likely jack up the prices."

Unocal set its $700 bounty on the cars after researching the publications of EZ Buy-EZ Sell Inc., which owns the Recycler classified ad magazines. Vintage cars - not classics, of course - averaged $650, and Unocal strategists estimated that $700 would have owners rolling to their doors.

"There's a healthy market for old, beat-up cars," said Worthington. "The market has tremendous strength. People will buy an older car for their youngsters to tinker with, or if cash is a little tight."

Now, theoretically, even a $500 transportation vehicle is worth $700. When Unocal's program is in full swing June 1, Unocal's expects to have as many as 30 people handling the purchase of 12 cars per hour, at least 40 hours a week.

That is, until 7,000 are on their way to the junk heap, and there are no more price supports for the Southland's 403,000 pre-1971 cars.