CARS
taxi operators were frequently challenged to source funding to upgrade their ageing vehicles and that the policy adjustment was expected to reduce the cost of improving the fleet of taxis used in public transportation.
The Trade Board says on its website that effective January 2019, no more licences for eight-year-old vehicles would be approved. However, the motor car import age is being lifted from five to six years, the agency said.
Hamilton, who also runs his own pre-owned car dealership – Auto Channel Jamaica Limited – says there are now thousands of cheap cars on the market resulting from the taxi initiative.
As for the performance of his
own dealership, Hamilton says Auto Channel has increased sales by 20 per cent because he had turned to purchasing cheaper cars in order to compete.
“Nothing over $1.5 million to $2 million. Bluebirds, Honda Fits, Suzuki,” he said, listing cars that fall into the cheaper category on his lot.
Comparatively, Hamilton added, the used-car market is down 20 per cent, year on year, due to slower take-up of pricier inventory.
However, he painted a rosier picture for new-car sales, which he said were now doing better because banks are offering auto buyers improved loan-repayment terms of eight years, and “in some instances, they are even extending it to 10 years”, he added.