Government increases age limit on imported used cars

Starting next Thursday, the age limit on two categories of imported motor vehicles will be increased by one year in a move the Government and local used car dealers are hoping will help to save the sector and drive down prices for Jamaicans.

Minister of Industry, Investment and Commerce, Dr Christopher Tufton, who announced the revised motor vehicle import policy yesterday, painted a bleak picture of the local used car market, pointing out that the sector has declined by nearly 57 per cent in the last two years.

Dismissing questions of whether this was an election year move, Tufton said statistics provided by the Customs Department show that some 6,200 used vehicles were imported in 2009, a sharp fall off from the 14,000 that were imported in 2008.

He blamed the decline in demand on the global recession and the increase in the cost of used vehicles, which he said has gone up by as much as 30 per cent.

"Lifting the age limits will stimulate the used car industry and by so doing, create job opportunities, expanded linkage opportunities and, very importantly, will allow for a more affordable product," he told journalists during a press conference at his New Kingston office.

"Government policy can't cease because there is a political cycle that requires an election. I am sensitive to my political commitments at this time, but I am also quite sensitive to my policy commitments as a member of the executive," he added.

The Used Car Dealers Association, through its president Lynvalle Hamilton, welcomed the Government's move as a step in the right direction, but left little doubt its members would like to see more done.

No-restriction policy

"You have a number of countries that embrace a no-restriction policy. We believe that if we embraced that sort of policy it would not hurt because the market would take care of itself," Hamilton reasoned.

"Right now we are quite happy. We will see what happens, but we are very grateful that the Government has taken this step. It is long overdue," he added.

Under the revised motor vehicle import policy, which was approved at Monday's weekly Cabinet meeting, the new age limit for motor cars will move to five years, up from three, while the age limit for light commercial vehicles such as pick-ups and cargo vans will move to six years, up from five.

With just over a week before the changes take effect, Tufton said the Customs Department, the Trade Board and other relevant government agencies will be notified so they can make the necessary adjustments to accommodate the changes.