The Jamaica Used Car Dealers Association (JUCDA) is warning that Government’s three year age limit for vehicle imports will push car prices out of the reach of a significant amount of people this year.

JUCDA president, Ian Lyn, calling for a policy change to increase the limit to four years, 11 months, said that the current stipulation would see dealers unable to sell used cars for less than $1.5 million.

“We are now in 2010 and the oldest vehicle that can be imported is a 2007 model,” Lyn remarked.

He added that the CIF cost of a typical 2007, 1500 cc vehicle dictated a local selling price close to the $2 million mark.

“This is way out of reach for most middle income earner seeking a used vehicle,” Lyn contended.

“The CIF cost of a new Corolla, for example, 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,” he said.

He argued that if the age of the vehicle is increased to four years and eleven months and importation of 2005 vehicles allowed, the costs would be far more manageable for all involved.

“A 2005 Corolla has a CIF of US$3,500 to US$4,000, which means we would be able to sell such a car for J$1 million,” Lyn said.

He told Auto that the JUCDA has met with Commerce minister Karl Samuda and the Motor Vehicle Import Committee representatives to discuss the issue and is awaiting a response.

However, according to Lyn, the concern of the used car dealers have not found favour with the Automobile Dealers Association (ADA), importers of new vehicles.

“I am disappointed that hey have lobbied against giving the used car dealers an extra year,” Lyn said.

The JUCDA president contended that the ADA should have no problems with an increase in the age of vehicle-imports as the associations were serving two different target markets.

He argued that an increase in the age of vehicles that can be imported would invariably allow middle income earners to be better able to afford a vehicle.

“There are very few new vehicles that you can get for less than $2.5 million,” he said, adding that if the three-year policy continued “a teacher or nurse will not be able to purchase a vehicle under $1.5 million.”

In the meantime Lyn said that the used car industry was suffering serious decline in sales as the economy contracted.

We have seen approximately 65 per cent decline in business with 41 dealers closing their doors over the past year, he told Auto.