Freelance Contributer
The T&T Automotive Dealers’ Association (TTADA) and the Ministry of Trade and Industry are warning potential customers to be on the lookout for fraud when importing or buying foreign used vehicles.
TTADA head Visham Babwah claims the problem is compounded by the ministry’s failure to deal with people who have licences to import cars as dealers but allowing other entities to illegally use their licences. He claimed individuals are allowed to import a foreign used car every four years.
However, he said some people act like dealers and end up defrauding consumers.
Babwah said the best bet is to purchase a car you see in the lot from a reputable dealer and not purchase a vehicle that can only be viewed on a computer monitor.
He said, “We are advising the public to be cautious, because this is not something that has recently started, this has been going on for a long time. In the consumer’s quest to save money, they go to all kinds of people claiming to be dealers, give them a down payment and end up with some broken down or stolen cars and then complain.”
He added: “There are dealers who do not trade, but they sell their licences to the highest bidder and these people in turn operate under the name of the registered car dealers and swindle people. This is illegal, and we have spoken to the ministry about this. To compound the problem, some people using a personal import licence start calling themselves a car dealer.
“They advertise, and they take a down payment. People have been losing their money through this third-party dealer who ends up robbing them.”
Babwah said bogus dealers claim to get cars as much as $30,000 cheaper in a bid to attract people.
“Buy the car you see on a lot, not a vehicle you see on a computer screen.”
Babwah said some registered dealers are also not adhering to the warranties stipulated by the Ministry of Trade.
In a release, the Trade License Unit (TLU) of the Ministry of Trade also advised the public to be vigilant and get familiar with all the requirements and procedures to import or purchase a foreign used vehicle.
It said while members of the public are allowed to import foreign used vehicles for their personal/ commercial use, the MTI strongly recommends that persons utilise, as far as possible, the services of a registered foreign used car dealer, as such entities have undergone strict compliance requirements and are actively monitored by the TLU.
The release advised that consumers ensure that the dealer is registered with the Ministry of Trade and Industry through the TLU at 701-1440 or 623-2931 ext. 3014, 3016, 3017 or visit the ministry’s website at https://tradeind.gov.tt/registered-dealers-tnt/ to check the current list of active registered dealers.
The TLU requires all registered dealers to have the following documentation: a Certificate of Registration, a VAT Registration Certificate, a Board of Inland Revenue Certificate, a National Insurance Board Registration Certificate, and a Financial Intelligence Unit Certificate. Additionally, all registered dealers must have an office space with a reception or waiting area, a vehicle storage area and access to garage facilities for the provision of auto services to clients. Dealers are also required to have records of vehicles in stock and those sold. In addition, dealerships must provide warranty agreements for all clients.