PPV sector boost
Brian Bonitto, Special Assignment Editor
Kirk Crichton, managing director of Crichton Automotive Limited, has said the public-passenger transportation system will be bolstered by the Government's reduction in the common external tariff (CET) from 40 per cent to 20 per cent.
"The reduction in CET will ease a lot of pressure off the Jamaican consumer, especially for prospective owners of PPVs (public-passenger vehicles)," Crichton told Automotives. "The duty on PPVs used to be the same as any other vehicle, but now they will be able to access a duty concession of 30 per cent."
The managing director highlighted the positive spin-offs to the public-transport sector.
"Taxi drivers can now upgrade their vehicles; making them safer and more reliable for passengers," Crichton said. "The move is a well-needed boost for the sector."
Lynvalle Hamilton, president of Jamaica Used Car Dealers' Association and proprietor of the used-car dealership AutoChannel, said the savings to consumers could range from J$100,000 up to as much as J$3 million.
"The price of vehicles with 1000cc and under could be reduced by J$100,000, and for vehicles with three litres and up - like a Range Rover and an X6 - the savings could range from J$1 million to J$3 million," said Hamilton. "However, this is all dependent on the dealer."
Factors influencing cost
Hamilton explained that there were several factors which influence the final cost of a vehicle to the consumer. These include the country from which the vehicle was bought; the cost, insurance and freight; and size of engine.
Crichton said, excluding the 30 per cent duty concession for PPV vehicles, consumers could now purchase a 2007 Nissan Ad Wagon for J$990,000, which was previously sold for J$1.16 million. A 2009 328i BMW, which previously sold for J$5.8 million, could now go for about J$4.6 million.
"The Government's move should do wonders for the consumer," Crichton added.