CAR prices have fallen off dramatically since the Government's adjustment of import duty early May, with consumers now paying as much as 35 per cent less to purchase vehicles.
For instance, a new Toyota Rav4, offered to the market at $3.9 million earlier in the year, is now being sold at $3.2 million by dealer Toyota Jamaica.
"The effect is greater with more expensive vehicles, especially those with larger engines, for example the 3.2 litre Land Cruiser, which was at $20 million. Now it is about $13 million," Toyota Jamaica marketing manager Howard Foster told Auto yesterday.Government's duty reduction has however impacted the value of larger vehicles more significantly because import duties are based on the engine size.
At the lower end, a Corolla, which was sold for $2.7 million by the dealer before May, is now priced at $2.4 million, a $300,000-drop.
And a new Nissan Tiida sold by Fidelity Motors dropped by $400,000 to approximately $2.2 million.
Nissan's Qashqai went from $5 million to $3.9 million while the Tiana dropped from $6.28 million to $5.1 million, Fidelity Motors marketing officer David Crawford revealed.
But while prices are falling, president of the Jamaica Used Car Dealers Association (JUCDA) Lynvalle Hamilton cautioned that the reduction would show up greater in new cars than in the models he sells.
According to Hamilton, used car dealers are now seriously challenged in getting competitively priced vehicles, especially from Japan.
"As a result of the recent earthquake, there is a shortage of new vehicles and Japanese consumers are purchasing newer, used vehicles," Hamilton said.
Read more: http://www.jamaicaobserver.com/auto/Car-prices-SLASHED_9057209#ixzz1QlaTGi00
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