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The Voice

The used-car industry
published: Friday | August 20, 2004

THE BIG surge in importation of used-cars over the past few years has served to satisfy several aspects of the transport sector; but with some hiccups along the way.

The proliferation of used-car markets, now scattered in many townships across the island, is graphic indication of the growth which is confirmed by the great numbers of cars on the roads.

It is not surprising therefore, as we reported yesterday, that complaints about used-car dealers tops the list of complaints received by the Fair Trading Commission in the last three years. In effect the concomitant increase in the numbers of car dealers has affected the quality of service to consumers.

It is a matter of record that the used-car influx has dealt a major blow to the rental car industry; at the end of 2003 membership in the major rental car association had declined by half. The availability of relatively cheap used-cars had given rise to illegal rental operators. The illegality arises because private motor cars are not licensed for hire or reward but for personal or domestic use only. The same prohibition affects the so-called robot taxis which pose similar problems in this aspect of urban transportation.

The fact that there are so many complaints to the FTC indicates that there are many used-car dealers guilty of malpractice. One such is misrepresenting the year of manufacture of a particular model which has implications for insurance of the vehicle.

The Government has a vital stake in a used-car policy which provides enormous duties and G.C.T on imported vehicles - and more revenues from licences and other fees for car parts etc.

But the government also has the responsibility to deal with the inevitable traffic congestion and road infrastructure that has to be expanded and maintained.

On their part consumers who can now more readily afford car ownership must exercise the responsibility to guard against being taken in by unscrupulous used-car dealers.

The used-car industry is obviously here to stay but its operation needs to be regulated more closely to deal with what seems to be persistent complaints that will grow with expansion.

THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.

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