The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMAS-based used car dealers have seen a significant drop off in business year-over-year, with one telling Tribune Business: "I've never seen it like this."

Some dealers who spoke with Tribune Business cited the revised, and higher, import tax structure for passenger vehicles and the roadworks as having had an adverse impact on their businesses.

Jay Allen, owner of Jay Allen's Auto Sales, told Tribune Business 2012 was the slowest year he had seen in nearly 20 years. "There's no business at all right now," he added. "I have never seen it like this. Things are tough out there from what I see. All I'm taking is blows. This year started off terribly slow, and it's causing plenty problems for me. I've been in this business for almost 20 years, and this is the first year that I experienced this kind of low."

Mr Allen said that while there were many inquiries, people seemed unable to come up with the funds to purchase cars.

"It's very frustrating, because it seems like the people cant get the money," he added. "People want the cars but it doesn't seem as if the money is there. This is now the end of March, and all I'm doing is basically working for nothing. I have a bunch of cars and no money. This time last year I would have sold 10 cars already."

Due to the new import tax on passenger vehicles implemented in 2010, the highest increase to date, engines larger than 2.5 litres or 2,500 cc's will be charged 85 per cent. "That dealt a serious blow to the car business. That put us right on the rocks. You really can't make any money with those kind of taxes," Mr Allen said.

Anayo Kelvin, owner of Grace Auto Sales, told Tribune Business: "Sales are really down, there's no doubt about it. The duty we've been able to kind of manage, but the road work is having the biggest impact. Sales have dropped almost 80 per cent. It's hitting home now. Over the Christmas, sales started to increase a little bit. January wasn't too bad, but February/March has been very slow."

Tekillah Hanna, an S&L Auto executive, told Tribune Business: "Things are slow right now, but the roadworks is making it even harder. Once we can get a car sold we can deal with the duty increase - we can make a little increase of our own - but the main issue is the roadworks.

"The duty increase was a big deal because we weren't able to bring in our vehicles as frequently. We are trying our best to deal with that."

She added: "So far it's still a little tough. We're still in business, so it's not as bad as we think, but it's not the best. The beginning of last year was OK, but coming towards the end of the year things got really bad."