Knaggs: Increasing age limit for foreign used would be economic disaster

The head of the association representing new car dealers has warned that if the Government agrees to increase the minimum age of imported foreign used vehicles on local roads from four to six years it will be contributing to making T&T the “dumping ground” for “unwanted products from first-world nations.” Philip Knaggs, President of the Automotive Dealers Association of Trinidad and Tobago, reacted with shock when contacted about the recent media reports that the Minister of Trade, Stephen Cadiz, was considering increasing the minimum age of imported foreign used vehicles.

He also claimed that foreign used dealers were spreading “misinformation” in an attempt to loby the Government on the issue. Knaggs said: “We believe that the foreign used industry has a place in our economy, but because of the fact that the vehicles are ‘used,’ the industry has to be regulated in order to protect our citizens. “The Ministry has to insist that vehicles no older than four years enter our country. It is a fact that older foreign-used vehicles use older safety technology than new vehicles. This fact cannot be challenged, and we cannot go backwards in our development.”

Knaggs also “lamented” what he referred to as the “misleading” information that he says is being spread by the Foreign Used Dealers. He cited a recent Guardian article which reported a representative of foreign used dealers as stating that 5,497 foreign used vehicles were imported into Trinidad and Tobago in 2010.  “This is grossly misleading and, unfortunately, consistent with the type of strategy used by the foreign used vehicle dealers in order to try and pull the wool over the eyes of the Government,” said Knaggs. He said: “The fact is that almost 11,000 foreign used vehicles were imported in our country in 2010. ”

The representative of the new car dealers also noted that “over the past decade, 33 per cent more foreign used vehicles were imported into this country than new vehicles. Those are the facts.” On the issue of increasing the warranty period on foreign used vehicles, Knaggs said: “Citizens of our country have to be protected. The Ministry of Trade has to mandate that the foreign used vehicles be sold with a minimum one year (or 20,000 kilometre) warranty. “If the foreign used dealers are to be believed that they are importing quality vehicles, then they should be mandated to stand behind their product. Minister Cadiz must protect the buying public. These vehicles also need to be checked and certified by the Bureau of Standards.”

The new car dealer said that, on average, paid only 75 per cent of the motor vehicle taxes paid by the equivalent new vehicles.  “Why should they pay less taxes? Do they not drive on the same roads? If anything, they should pay higher taxes because their cars are older, with older safety technology and higher pollution emissions. They have a tremendous negative environmental impact.” The issue of foreign used engine sizes allowed remained a hot topic. Knaggs stated that the argument used as to why used vehicles were even allowed into Trinidad and Tobago was an economic one. “If the idea is based on making affordable cars available to the buying public, then why are foreign used vehicles allowed to be imported with engines larger than 1.6 litre? Is giving a tax break on the importation of a 3.0 litre SUV in the spirit of the legislation? No it is not. 

“The public would be better served by reduced duties and taxes on smaller-engine new vehicles. Then the public would have cheaper vehicles, with 3-year warranties, the latest safety and emission technology, and proper dealership parts and service support.” Knaggs stressed that increasing the “allowable age” for foreign used vehicles would be an “economic disaster” that would send a signal to the rest of the world that Trinidad is content on being a “dumping ground” for “unwanted products from first world nations.” He also added that the “Ministry of Trade has to insist on a one-year warranty on these imported used vehicles. There is no better way to demonstrate that the Ministry of Trade is committed to protect the citizens of Trinidad and Tobago.”