CAR imports doubled in December as dealers bought smaller cars as a safeguard for the 2010 recession.

There were 1,229 motor units imported in December according to Port Authority of Jamaica data, which was nine per cent more than December 2008. More significantly it represented the highest figure in 2009 which had monthly imports averaging 600.

“December was a good month in terms of imports because we were going into 2010, so what happened is that we educated dealers as to the type of vehicles to bring in,” said Ian Lyn, president of the Used Car Dealers Association (JUCDA). “Instead of importing a Honda Accord with a CIF (cost insurance freight) of US$10,000 they would bring in two Civics for CIF of US$5,000 each. So that is what happened; dealers are buying smaller cars.”

Some 8,000 cars were imported into Jamaica last year which was half the 15,932 imported in 2008. In terms of sales, there was a 65 per cent decline in the business for used cars. The decline was due in part to the ongoing recession.

“We need the five-year policy and the banks need to bring down rates,” he voiced about his industry’s challenges which resulted in the closure of 40 dealers in 2009 with 95 currently operating.

JUCDA made a request to the government to allow the importation of used cars up to four years and 11 months old. Currently, only cars three years old and under can be imported to Jamaica, which Lyn previously argued makes car ownership prohibitive to many middle-income earners. If the request is granted, then 2005 model cars will be allowed into the country.

Last week, JUCDA signed a deal with Scotiabank Jamaica, that would give its customers access to car loans at 15.95 per cent for the rest of this month, after which a rate of 16.95 per cent will be offered up to October. Lyn was confident that the deal would be renewed at the end of the period given the prospects of a turnaround in the market.