Car Dealers Lobby For Restrictions on Used Vehicles
Thursday 14th June, 2018-The New Car Dealers’ Association is petitioning government to impose restrictions on the importation of used cars claiming their businesses are suffering as a result of the government allowing “very old cars into the state, which has lead to a decline in the sale of new vehicles.”
According to the association whose members met with Cabinet on Wednesday, the restrictions should be on vehicles more than five or six years old. They are contending that their businesses’ contributions to the government coffers will be affected if the administration continues to waive portions of the taxes, which the used-car importers are now required to pay and allow very old cars exceeding six years to enter into the state.
Additionally, the New Car Dealers Association pointed to the jobs of the more than 150 workers in their employ being adversely affected.
According to Chief of staff in the Office of the Prime Minister , Ambassador Lionel, ‘Max’ Hurst, Cabinet was not convinced by the argument put forward by the representatives.
Cabinet has asked the dealers to return at a later date with evidence, showing a direct correlation between used car imports and the sale of new cars in order for the government to change its policy.
The dealers have also expressed concerns that many of the used imported vehicles are involved in the business of leasing and renting, thereby cheating on insurance, with private license plates, which is taking a toll on rental car companies who are required to purchase new vehicles every five years.
Dealers are arguing that the life of a new car is approximately 20 years, the while the lifespan of the imported used vehicles is in the region of 5 years.
Hence, the used cars will become rubbish not long after they are imported.