Increased age limit would harm new car industry -- LaCroix

PRESIDENT of Automobile Dealers Association (ADA), Kent LaCroix has defended his association's position that the age limit on imported vehicles should remain at three years.

The ADA president said that vehicles brought in at a significantly lower price would, in fact, impede sales of new cars.

"An increase in the age limit would be detrimental to the new car industry," LaCroix told Auto on Wednesday.

"Our stand is that the official three-year limit should remain as is."

LaCroix was responding to questions from Auto regarding calls by the Jamaica Used Car Dealers Association (JUCDA) for an increase in the age limit to allow importation of 2005 vehicles.

According to LaCroix, the ADA has indicated their position to the commerce ministry that the three-year age limit should remain.

He added that an influx of older vehicles would create more risks and charged that used car dealers are already unable to sell the vehicles they now have in stock.

"Why increase the age limit to add to an existing stock that cannot be moved?" he asked.

Last week, Auto reported that the JUCDA was lobbying Government for an increase in the age limit of imported vehicles from three years, 11 months to four years, 11 months.

That change would allow 2005 vehicles to be imported.

JUCDA president, Ian Lyn, argued that oldest vehicles now allowed are 2007 models, thus pushing the cost of used cars beyond the capacity of the target market.

According to Lyn, used car dealers are hard-pressed to sell 2007 vehicles for less than $1.5 million each.

"This is way out of reach for most middle-income earners seeking a vehicle," he told Auto.

Lyn justified his position saying that the CIF (cost, insurance and freight) of a new Toyota Corolla, for instance, is US$14,000 while a 2007 vehicle attracts about US$9,000 CIF putting it out of reach of the used-car target market.

According to Lyn's calculation, the 2007 used vehicle would have to be sold close to $2 million.

A 2005 Corolla, on the other hand, has a CIF of US$3,500 to US$4,000, Lyn said, making it possible to be sold closer to the J$1-million mark.

The JUCDA president told Auto that the ADA should have had no problems with the increase in the import age limit as the associations were targeting two separate markets.

"There are very few new vehicles that you can get for less than $2.5 million," Lyn said, adding that the higher price would push a significant number of consumers out of the market.

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