MINISTRY PAPER #19
Used Car Importation

Objective of Ministry Paper

The objective of this Ministry Paper is to set out the new policy measures as approved by Cabinet and to reinforce the existing policy.

Background

Since February, 1989, various measures have been instituted to revise, expand and liberalize the Motor Vehicle Import Policy. The main objective of this thrust was to increase the supply of motor vehicles to eliminate the second and third sale market and to ensure that real demand was satisfied. Many persons needing a reliable motor vehicle to efficiently carry out their day to day activities are now able to do so. To this end, the Government has achieved its' goal. The supply and demand gap has visibly begun to close and the second and third sale market has virtually disappeared.

Notwithstanding the general acceptance and confidence in the Motor Vehicle Policy, there are areas which needed to be revisited to further provide for road safety, fair competition, revenue and consumer protection.

Those areas reviewed and amended were:

• Age of Used Cars
• Age of Used Commercial Vehicles
• Warranty on Used Vehicles
• Stocking and Availability of Spare Parts for Used Motor Vehicles
• Importation of New Vehicles by Used Car Dealers.

General Information

(1) Age of Motor Vehicles - (Cars and Light Commercial Vehicles)

Importers may import vehicles to a maximum of four (4) years for cars and five (5) years for light commercial vehicles at the time of importation.

A vehicle although being new in terms of kilometres but not manufactured in the current model year, will be considered used.

(2) Warranty of Used Vehicles

The warranty on used motor vehicles have been increased to ninety (90) days. Warranty should cover the undermentioned parts:

• Engine
• Transmission
• Differential
• Steering Gear
• Drive Train
• Front End

Dealers must either repair or replace the defective part(s) free of charge within the first ninety (90) days.

(3) Stocking and Availability of Spare Parts

Used car dealers are required to stock fifteen percent (15%) of their inventory with the majority being mechanical parts.

(4) Importation of New Vehicles by Used Car Dealers

In order to allow for fair competition, used car dealers will be allowed to import vehicles zero to four (0-4) years under the following conditions:

• One year Restrictive Clause will be applied to those permits that fall within the (0-1) year category except those that are approved used dealers.
• The existing Motor Vehicle Policy will be maintained and the implementation of the amendments to the policy become effective immediately.

Phillip Paulwell
Honourable Minister of Commerce & Technology

1998 April, 14

CERTIFIED NEW CAR DEALERS (1995 - 2000)

CERTIFIED USED CAR DEALERS (1995 - 2000)

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