By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
NEW auto dealers have “upped the ante” in efforts to attract consumers and prevent cheaper imports from undercutting their business, the Bahamas Motor Dealers Association’s (BMDA) chief said yesterday.
Fred Albury told Tribune Business: “We have focused our energies on new technologies like hybrid vehicles. We’re looking to move to plug-in hybrid vehicles. We have upped the ante with regards to our warranty on new vehicles, which was three years, and is now five years.
“We have made investments into suspension and wheel alignment equipment. We’re going to invest significant money into a body repair shop at my Wulff Road shop to ensure that customers are getting value for money. We have to do things to keep our doors open.
“The government made some adjustments in import taxes last year which I think will be beneficial in the long run to consumers. Vehicles with smaller engines, more fuel efficient vehicles, will be more affordable to the consumers. They will be getting newer technology compared to the used cars coming in. “
Mr Albury added that he was optimistic over the potential for new car sales in 2019, with the full impact from the 25 percent duty rate for vehicles with engine sizes of 1.5 litres or less to be felt in the coming months.
“I’m being optimistic,” he added. “With the adjustment on import taxes in the last budget we’re seeing an increase in floor traffic. I think we have gone through a phase where a lot of consumers are frustrated with these cheap cars that they have difficulty finding spare parts for and keeping them on the road, so they’d rather look at something newer. With the import tax on the smaller engine it has made the smaller new cars much more affordable for the consumers.”
With the introduction of a credit bureau in the works, Mr Albury acknowledged there was concern over how this could impact new car sales, which are primary secured via bank loans.
“It is a bit of a concern but consumers are now going to have to live up to their responsibilities to maintain that creditworthiness. Too long have consumers been getting away with things. I think the credit bureau will have some impact initially but, in the long run, it will be good thing,” he said.
Comments
John 5 years, 2 months ago
Persons can go online and bid on cars in Japan for under $300.00. So these cheap vehicles have become a disposable item here. People order them, import them, drive them and once they become inoperable they dump them. ANd that is what Japan is also doing. There is so much excess of these vehicles, Japan is just dumping them to make room for newer vehicles. And as long as the economy remains weak and money is tight Bahamians will opt for cheaper Japanese vehicles over other models. And since many have had bad experiences with banks and loans, they would rather do a cash purchase that they can manage and afford.
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