TTADA: Foreign used car prices increase in 2021

TT Automotive Dealers Association president Visham Babwah said on Thursday that the price of foreign-used cars will increase next year in keeping with Finance Minister Colm Imbert’s budget announcement that all private cars will attract customs duty, motor vehicle tax and Value Added Tax in 2021.

Tax concessions remain in place for commercial and industrial vehicles and public transport vehicles. From January, Imbert said, the age of imported foreign used cars will be reduced from four to three years, the quota for the importation of used cars will be reduced by 30 per cent and a quota system for new cars will be implemented.

“Come January 1, citizens will have to pay higher prices for cars,” Babwah said and consumers can be looking at a 50 to 60 per cent increase in prices.

Babwah said the Toyota Aqua, Toyota Corolla Feel, Toyota Axio, Nissan Note; Honda Vezel, Nissan Leaf, Honda City and Honda Fit are the most popular foreign used models and all of them will see major price increases in January (
see box).

Given the global focus on climate change and hybrid vehicles to advance that agenda, Babwah said, “The hybrid car is going to cost more than a non-hybrid car.” People who want to buy non-hybrid cars, like the Wingroad wagon will not find relief as the prices on these will increase too.

He explained that the reason for this is because “it will cost more for a three-year-old car, now that four-year-old cars will be banned in 2010. Babwah said TTADA’s concern that these measures could affect people like electricians, technicians and mechanics who are indirectly employed in the used car industry.

He lamented that despite being assured by Trade and Industry Minister Paula Gopee-Scoon, about two weeks ago, that she would meet with TTADA to address their concerns, that meeting is yet to take place. He also said Imbert’s claim of over 1 million vehicles on TT roads is false, saying a true estimate is roughly 220,000, based on the way vehicles are licensed.