Friday, October 6 2006

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NOT GOING ANYWHERE: Government plans to limit the amount of foreign-used vehicles on the nation's roads as a means of alleviating traffic congestion a...

THE Automotive Dealers Association (ADA) has come out in support of Budget statements which indicate Government’s intention to reduce the number of foreign-used cars being brought into the country.

During Wednesday’s budget presentation, Prime Minister Patrick Manning said, “Government will be instituting measures to curtail importation of foreign-used vehicles.” However he did not say exactly what those measures were.

However, in a direct response, officials within the foreign-used car industry say the only reason new car dealers are backing the Government, is purely for profit.

The ADA president Philip Knaggs, said the glut of foreign-used vehicles has had a negative impact on the environment. He added that short warranties were due to the fact that these cars are dumped in developing nations such as Trinidad, after their useful life has expired.

“These vehicles, as they age, become a burden on Japan. The Japanese Government recognises this and discourages their consumers from owning these vehicles as they age,” said Knaggs.

On this basis, the Association proposes that Government reduce importation duties on smaller engine vehicles, thus the, “general public would be able to afford brand new vehicles.”

Knaggs explained that many foreign-used vehicles receive taxation breaks not afforded to new vehicles saying that it seems, “contrary to the very aim of taxation.”

Instead he has proposed to Government directly, that they tax used vehicle imports at a higher rate. However Pre-Owned Automobile Association President Inshan Ishmael fired his shots telling Newsday the exorbitant price of new vehicles was due to high mark-up and profits made by new car dealers. “New car dealers tend to sell cars at a mark up of $40,000 to $50,000 dollars while a foreign-used car dealer earns approximately $5,000 on each vehicle sold. We have been cutting the new dealer profit and that is where Government’s problem is,” declared Ishmael.

Government is yet to elaborate on the measures they will take, “to curtail the importation of foreign-used vehicles.”

Meanwhile, foreign-used car dealers say they will very soon hold a nationwide “lights-on” protest during which owners of foreign-used vehicles and those who support the industry, are expected to turn their headlights on for 24 hours.