Depreciation of dollar pushing up cost of used cars

The depreciation of the Jamaican dollar against the American currency is pushing up the prices of imported reconditioned vehicles.  According to the Jamaica Used Car Dealers Association, JUCDA, the level of increase will exceed five per cent.

Lynvale Hamilton, president of the association, said a further decline in the value of the dollar will trigger a steeper rise in car prices.

“I would say about 5-10 per cent at the moment. It is not a heavy increase, but we do believe that if it continues the car price will go at a point where consumers will really feel it badly,” said Mr. Hamilton. He added that the movement in the value of the Japanese yen is also impacting on car prices locally. 

In the meantime, the Used Car Dealers Association wants the Government to roll back the increase in the Customs Administration Fee (CAF).  Mr. Hamilton said the adjustment is having a negative impact on the auto trade.

“We have absorbed the CIF the other day which we think was quite hefty, quite unreasonable. We are calling on the government to make some adjustments. We believe if they can’t do anything about the dollar sliding as it is, some adjustments must be made somewhere else so where we can survive,” argued Mr. Hamilton.

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