Jamaica : Used-car dealers predict erosion of three-to-four per cent profit margin
Government’s new motor-tax regime could drive up auto prices on small cars, stoke competition, and put used-car dealers out of business, according to chief spokesman Kenneth Shaw.
Shaw, the president of the Jamaica Used Car Dealers Association (JUCDA), went as far Monday to predict that the sector could fold.
Shaw later told Wednesday Business that the used-car sector’s profit margins are about three to four per cent, and that JUCDA, based on its assessment of the new tax structure, anticipates a total erosion of that cushion.
“If this policy is allowed to continue as it’s announced, then you won’t have a used-car sector anymore,” he said, speaking Monday as invited guest at the Rotary Club of St Andrew North’s weekly dinner meeting. READ MORE…