Used-car dealers ask for help - First-quarter imports down 40% from 2013

Chad Bryan, Gleaner Writer

President of the Jamaica Used-Car Dealers' Association (JUCDA), Lynvalle Hamilton, is looking to the Government and banks to help alleviate the pressure used-car dealers are facing. This is as the number of units they import for resale has plummeted by 40 per cent from last year's first-quarter figures.

Nearly two weeks ago, a letter about the survival of the players within the used-car industry was sent to industry, investment and commerce minister Anthony Hylton. Hamilton is currently awaiting a response, which, he believes, is long overdue.

"We have embraced the Customs fee, which is over $70,000 per car. We are saying reduce this for a year or so. The banks are not helping the situation either. They tend to be lending for cars much older. We believe some level of leniency is necessary so that we can import cars older than the five years," Hamilton pointed out.

"If we are able to bring in older vehicles, we will bring in more vehicles. All we are asking for is a fighting chance," Hamilton continued.

The continued devaluation of the Jamaican dollar has also led to a price increase in vehicles, which, Hamilton says, tends to be already out of the reach of what many consumers desire.

"The vehicle that the consumers really crave for, or that is conducive to their lifestyle, we are looking at most of these cars going over $1.6 million. And when we look at the pay scale of the average Jamaican, most of these persons would not qualify for a loan for these vehicles," he stated.

Vehicles such as the 2008 models of the Honda Fit, Nissan Tiida, Toyota Corolla, Honda Stream, and Mazda Premacy, which Hamilton stated fall below $1.6 million, are doing well. However, these sales are not enough to sustain the industry in the long term. In light of this, dealers have started to complain as they are not able to meet their other obligations.

"A lot of the dealers are just frustrated. What I do know is that the larger dealers have begun to cut staff. We really just cannot continue as we used to. They have bank loans to repay. It's not prudent for them to have high overheads. We won't be able to employ persons, and more job loss is possible," Hamilton said.