Used-car dealers, Gov’t at odds
JAMAICA Used Car Dealers Association (JUCDA) and Government appear to be on a collision course over the recently published amendments to the importation policy.
According to Lynvalle Hamilton, JUCDA president, the law was implemented without any discussion with his organisation.
“We are not happy with the way the Government changed the importation policy without any consultation with us. We were never even sent a draft. We believe it was deliberately hidden from us,” Hamilton told Auto. “I’m appalled. Had there been discussions, we would not be here.”
The president said he and his executives would be meeting on Monday to discuss their intended plan of action.
Victor Cummings, Trade Board administrator/CEO, however, dismissed Hamilton’s claims stating the policy has been in review for the past five years.
“It started under Minister [Karl] Samuda, under the previous administration. I had consultations with various members of the sector… not just the used-car sector. Mr Hamilton’s approval was not necessary for it [the policy] to be constructed,” said Cummings.
“I was instructed by the Minister [Anthony Hylton] to construct a policy in the best interest of the consumers,” he continued.
Hamilton said his organisation’s main contention with the April 3, 2014 document that of warranties and of motor vehicle year-age discrepancies.
“The Government is asking us to embrace a policy that far exceeds the warranty of the manufacturer… seven years outside of the manufacturers warranty on suspension, general electrical parts and front end parts… We could never sign off on this. This is grossly unreasonable. This is gross injustice!”
The paper, tabled by the Ministry of Industry, Investment & Commerce, came into effect in April, and reads in part: “All certified used motor vehicle dealers and brokers must provide warranties in accordance with the following guidelines, determined by the vehicle’s age and odometer reading.
* Class B Warranty: Six months or 7,500 km/4,660 miles, whichever is attained first.
Class B Warranty is applicable to vehicles manufactured more than four years, but fewer than seven years before the sale date, with an odometer reading of less than 106,000km/65,867miles.
* Class C Warranty: Three months or 4,500 km/2,796 miles, whichever is attained first.
Class C Warranty is applicable to commercial vehicles manufactured more than six years but fewer than 11 years before the sale date with an odometer reading less than 178,000 km/110,607 miles).
The warranty covers the parts mentioned in the following schedule: engine; transmission; differential; steering gear; drive chain; front end; major electronic components (computers, air conditioning system, general electrical system); and suspension system.”
Hamilton argues the law could put several dealers, who are currently trying stay afloat in the current harsh economic climate, out of business. This, he asserted, would put people out of their jobs.
As it relates to the year-age discrepancy, the used-car group head said the Government verfies that information before a licence is issued. With the new policy, the onus is now on the used-car dealers.
“The Government, through the Trade Board, is the authority in determining the model year of the vehicle imported. How can they not be held responsible?,” asked Hamilton.
Cummings said the Trade Board relies on the information submitted by the dealers.
“I’m of the view when they [used-car dealers] purchase the cars, they fix them and ensure the vehicles are working properly before selling them to their customers. We are protecting the interest of the ordinary consumer.”