USED-CAR

dealers are being certified without meeting the stipulated requirements of the Motor Vehicle Import Policy, which mandates that operators be registered under the Companies Act; have a permanent address and location of operations approved and inspected by the responsible ministry; be registered with the National Insurance Scheme, National Housing Trust (NHT) and the Tax Audit and Assessment Department; have a valid Taxpayer Registration Number (TRN); stock spare parts of 10 per cent of inventory and offer related services; offer an expressed warranty on each unit sold, and comply with obligations under the Fair Competition Act (FCA); provide adequate repair and servicing facilities; and undergo an annual inspection and payment of a fee as determined by the responsible ministry.

Checks by The Gleaner revealed a number of car dealers operating without a repair and servicing facility. Several dealers have also acknowledged that inspection of facilities is not done regularly.

“The biggest problem is the little man that is parking up five to 10 cars on the road, they are the bigger problem,” said a veteran motor vehicle sales agent, who requested that his name be withheld.

“A car cost me $2.1 million and I put on $200,000 to make a money, but I have to pay taxes, workers, and other expenses out of it, while the little briefcase dealer get away scot-free … because he can sell the same car for $1.9m and has no expense at all.”

BUYS FROM BIG PLAYERS

Another dealer, who says he has been in the business since 2008, told The Gleaner that he does not import cars, but makes purchases for bigger players in the Corporate Area.

“I do not import for myself, I buy from the big man in Kingston,” he said. “It is less headache to pay an importer to take down a few cars on his licence; it cost you an extra $50,000 depending on the year.”

According to the website of the import licensing authority, the Trade Board Limited, sedans with seating capacity exceeding five persons and station wagons and SUVs carrying fewer than eight should not be older than 2013, but older versions were on sale at several lots visited.

“No, they are not only for taxi operators; anyone can drive them,” a dealer said, anticipating a sale. “The big guys are able to import 2010 cars for you, but mainly Voxy, Mark X and Axio.”

“First-time car dealership business was so good, you were able to pay your bills comfortably, but now, sometimes the most I will make on what I paid for it is $100,000,” he lamented.