Trade Ministry to scrutinise used car dealers

In an effort to enhance its image, the Pre-owned Automobile Dealers Association (PADA),  will only accept into its fold, those dealers who have been recommend by the Ministry of  Trade, said Kvaan Marajh, PADA’s group secretary and executive member.

The Association held its  official launch on Wednesday  at Valpark Shopping Plaza. The PADA is made up of about 35 dealers authorised under the new Regulations Act of 2003, which is overseen by the Ministry of Trade. “The Government has set up a system where the customer is protected. They have to approve registered dealers.” said Marajh in an interview. Marahj also believes this new system will curtail the waiting period for cars normally experienced by customers after they pay their deposits, a wait which in the past might have been as much as five months. Dealers, he explained, are now being licensed to import vehicles for inventory, an initiative which Marajh maintains makes business “a lot more customer friendly and safer for the public to purchase.” He does concede, however, that since duties have gone up and dealers are only able to bring in cars which are four years old or newer, costs are, in fact, being passed on to the consumer.

At present the list of registered dealers is at 92, said Marajh, noting though that there are many businessmen calling themselves facilitators who aren’t registered, don’t pay NIS, are not VAT registered and are getting away with selling pre-owned vehicles. PADA, he said,  has legitimised the pre-owned automobile industry and stressed that by setting up a parts network customers can go on a website and find what they need. It is projected that this will be onstream in six months, and it is expected to have a positive impact on available insurance coverage for pre-owned cars. Currently, PADA is evaluating prospective members through close scrutiny of their applications. According to Marajh, they will only accept reputable business people who are authorised by the Ministry and whose business operations are scrutinised by PADA. He noted that PADA “did not  want people who are just going to be around for two years trying to make a quick buck.” At present, the group is lobbying to obtain an extension on new regulations implemented by the Bureau of Standards regarding label requirements for tires.