The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A proper title system has become “a vital necessity” in combating exploding levels of auto fraud and theft, a leading auto dealer yesterday telling Tribune Business that talks between government and industry players were “heading in the right direction” to create one.

Rick Lowe, operations manager and a director at Nassau Motor Company (NMC), told Tribune Business that there was “a real concern that people are being ripped off and losing their assets” as a result of auto theft and fraudulent sales.

Noting that a Bahamian vehicle titling system had been discussed for two-three decades, Mr Lowe said he and other auto industry representatives, plus banking and insurance executives, had attended a meeting on the issue at the Ministry of Transport on April 18.

A further meeting has been scheduled for May 9, and Mr Lowe said vehicle titles were intimately linked to other problems such as vehicle theft, and the importation of wrecked/used cars.

“It looks like it’s headed in the right direction,” Mr Lowe said of the talks. “The idea is to put a Cabinet paper together on the way forward.

“There’s a real concern that people are being ripped off, and how do you prevent people losing their assets. It’s been happening long enough that something needs to be done. The problems associated with these issues are not going to go away.”

Between 1,100-1,200 vehicles are stolen annually in the Bahamas, and Mr Lowe said the problem was particularly acute for those who had no insurance coverage for theft, but still had outstanding bank loans on the missing car.

He added that Glenys Hanna-Martin, minister of transport and aviation, appeared to “see value” in addressing the problem, and the April 18 meeting included representatives from the police, Customs, Road Traffic Department and Ministry of National Security.

Outlining how a vehicle title system would work, Mr Lowe said it would involve insurance companies issuing documents showing that banks, or other lenders, held the deed or title to vehicles subject to outstanding loans.

“When you trade in your car, the bank will give you a title document,” Mr Lowe said. “Assuming the loan is paid, the bank will release your title document to you.

“Our understanding is that people are currently trading or selling cars another bank has title to. They sell it to a dealer, or an individual on the street, but it has a lien from somebody else on it.

“When you trade a car it should not have a lien on it. But currently, persons buying a vehicle may not actually own it, as the title is assigned to the lender.”

A titling system would prevent this by lodging the deeds with the lender, and recording their name. A car or vehicle could thus not be sold in the Bahamas without it, and its confirmation that no lien existed.

“Now you just require a Bill of Sale, which does not prove anything,” Mr Lowe added. “It would prevent fraud. It’s a crucial instrument, and has become a vital document or a necessity.

“Theft is a major issue. Many people also believe it would prevent the importation of wrecks that contribute to the stolen vehicle problem. All the necessary checks and balances are not in place.”

The NMC director added that talks on a vehicle title system had been going on for two-three decades, and said: “The Government tried to put one in 30 years ago, but people never followed it.”

Mr Lowe said vehicles are either being stolen for parts, which are then switched to a wreck, or their Vehicle Identification Numbers (VINs) are replaced from an imported wreck. In the latter case, the Customs slip giving permission for the wreck to be licensed at Road Traffic is then used to licence the stolen vehicle.

“There’s a legitimate case for some people importing wrecks for parts. The difficulty is to differentiate what is brought in for parts, and what might be contributing to theft,” Mr Lowe told Tribune Business.

“We have to decide what is a wreck, what is allowed in for spare parts. All these issues arise. That has to be part of the discussion going forward. It’s not intended to put someone in legitimate business out of business; it’s intended to help stop crime.”

As for importing older cars into the Bahamas, Mr Lowe said the concern was whether parts could be sourced from the Far East/Japan, especially if the manufacturers had stopped making them.

“Do we follow the lead of other countries in the region, and reduce the age limit to five years, or phase it in, saying you won’t allow in imports older than eight years and getting it down to five,” Mr Lowe added.