The Government has drafted a new policy to regulate the foreign used car industry in T&T. "What the Cabinet approved today is the draft policy to regulate the foreign used car industry. The Government recognises the contribution of the foreign used car dealerships and the cars that are sold at reasonable prices for those who can't afford new vehicles. We realise that there has to be some regulation in the industry," said Trade Minister Stephen Cadiz. He was speaking yesterday at the post cabinet press conference at the Diplomatic Centre St Ann's.
He said there are many issues that have affected consumers which need to be addressed. "There have been a number of issues around these vehicles, like the actual age, warranty, whether the vehicle came into the country legally and so on," he said. The Government will also be keeping the quota system which was introduced by the previous administration. "We are proposing a quota of 13,500 vehicles for each year up to 2013. The quota is for two main reasons. One is for the traffic congestion but it is not like we are limiting the vehicles. Also it is because of the environment," he said. Cadiz referred to the quota system from previous years which showed that in 2009 the quota was 14,600 vehicles, out of which only 6,000 were actually imported.
In 2010 the quota was 13,500 and up to September roughly 5,475 vehicles were imported. Cadiz said the Government will be registering the roughly 300 dealers in the country to ensure consumers are protected. "We will re-register dealers. It will be a means of protecting consumers so when you go to buy a vehicle they will be providing a warranty and these dealers will be legitimate. "People will not have issues for instance with falsification with the age of the vehicle or in some cases where vehicles are brought in that are older than the four year maximum that is allowed," he said.
Dealers will also have to set up garage facilities to repair vehicles and carry warranty claims, he said. "They will have to provide spare parts so when you buy a foreign used vehicle after the new Act is proclaimed early next year, the consumer will not be buying cat-in-bag," he said. Cadiz said the Government will have to ensure they collect their taxes. "The state also has to be protected because the state collects taxes that are applicable to the vehicles. The dealers have to continue doing business in a legitimate way because besides customs charges and you will be de-registered if you fall out of that," he said.