Brian Bonitto, Jamaica Editor - Overseas Publication

A NEW year usually brings hopes and expectations of things to come. But, just as in 2009, Jamaica's auto dealers are bracing for a 'rough ride' in 2010.

"The outlook for next year is not as good as we would want it to be," said Kent LaCroix, chairman of the Automobile Dealers' Association (ADA).

"It looks difficult," he continued.

LaCroix, who has been elected to five consecutive terms as head of the new car-importers' group, said from all indications, the road ahead is shaping up to be a challenging one.

"The Government's stimulus package ends in March. Prices are expected to go up, taxes are expected to increase and the value of the Jamaican dollar may decline," LaCroix told Automotives.

The chairman said importation levels would also decline as dealers adopted a wait-and-see approach.

"Things are going to be harder," he said.

However, the auto industry veteran thinks dealers will have to put on their thinking caps to stay in business, while assisting consumers.

"Dealers will have to improve their servicing ability and selling of spare parts, as customers will be keeping their vehicles a little longer," he told Automotives.

"I hope the banks reduce their lend rates to assist consumers," he added.

LaCroix's counterpart, Ian Lyn, president of the Jamaica Used-Car Dealers' Association (JUCDA) forecasts a similar outlook.

"It's looking pretty bad for us," said Lyn, who assumed the reins of the organisation in October.

Since the start of the year, used-car sales have plummeted by 64 per cent and 21 dealers have closed.

"We're still on life support," Lyn said. "Last month, we imported only 300 cars."

The president was quick to point out that his group did not benefit from the Government's stimulus package.

"We appreciate the move. But, it did not work for us as we did not have cars in-bond," he said.

"Most used-car dealers pay taxes upfront and don't store vehicles in-bond."

He, however, said if the government relaxes its importation regulation, it could give the sector a much-needed jump-start.

"We would want a five-year importation regulation," Lyn said. "This means we could bring in cars five years old. Currently, it is at three."

He said if current trends continued, at the end of 2010 only a few dealers could be left in business.

"Only 20 dealers may be left of the current 100," he said.

brian.bonitto@gleanerjm.com