Latest update April 19th, 2024 12:59 AM
Oct 14, 2018 Consumer Concerns, Features / Columnists
by PAT DIAL
In Guyana, the overwhelming majority of motorcars now imported are either second-hand, reconditioned or sold as is from a previous owner. Until the last three or four decades, only new cars were imported and the firms, which sold such cars were the most reputable companies in the country.
Complaints were rarely ever heard and if there was a manufacturer’s fault, this was quickly and discreetly addressed by the agents who sold such cars. Though Japanese cars were beginning to capture the market, American, German and British cars were still seen on the roads of Guyana.
This post-colonial fairly stable milieu steadily metamorphosed into the present: The country suffered severe shortages of foreign exchange and this affected the importation of cars. Indeed, Russia accommodated Guyana by barter arrangements and some Russian cars were imported.
Then there were currency devaluations and cars became even scarcer. Finding spare parts was an arduous and difficult exercise. Almost all the companies, which used to be agents for new cars were nationalized or closed.
Under Mr. Desmond Hoyte’s Presidency, the Free Market was re-introduced and the economy of the country began to improve. It became possible to import cars again. But there was no return to the post colonial milieu mentioned above; a number of one-man car dealers established themselves and took over the market.
This trend coincided with the aggressive marketing by Japanese second-hand car dealers from whom these newly-established local dealers imported. And since there was a car famine for such a long period, these newly-established car dealers enjoyed a good market. Later, the commercial banks entered the second-hand car business by offering loans at discount interest rates to purchase cars.
We thought it useful for readers to have a background understanding of the second hand car industry.
Today, the market has become more equilibrial, or some may perceive it as over supplied. The dealers seem to have become less careful of the quality of the second hand cars they import with the result that most purchasers seem to have serious complaints with the vehicles they would have bought. Warranties are for six months only and even for these six months, the warranty does not cover all the faults, which may arise in the car.
And in many cases, the warranties are not honoured under one subterfuge or another. The situation where buying a second hand car from one of these local dealers is now a high-risk operation.
Surmounting these difficulties and the “jhanjat” to employ a very apt Creolese word as mentioned in Prof Richard Allsopp’s Creolese dictionary, could easily be achieved once the governmental authorities and the purchasers have the will.
The Chairman of the Competition and Consumers Commission, Attorney-at-Law Ronald Burch-Smith, as recently reported in the press, feels that the fundamental problem in affording protection to the consumer is reform of the Hire-purchase Laws and also standardizing contracts between car dealers and purchasers. These contracts are often unfair to the purchaser.
Mr. Burch-Smith pointed out that his Commission does not have the authority to reform or strengthen the Law since that is the province of the Attorney General’s office on request from the Ministry of Business. To provide immediate first aid in this matter, it would seem to us that the CCAC, the Consumer Association and the Bar Association should devise a suitable contract and circulate it and not await the reform of the Laws.
At the same time, the warranties should be strengthened and may identify parts of the car.
It would seem to us that two other approaches could be employed in achieving a more equilibrial relationship between dealers and customers and removing bases of conflict and confrontation: The first is that the purchaser should engage a good mechanic to examine all parts of the car. For example, the use of plastic parts in the engine when metal parts would be safer and longer lasting could be challenged. Such a mechanic must be armed with appropriate equipment, especially, to be able to test electronic parts and their functionality.
Today’s cars are highly electronic in their functions since that is now the usage in the developed world where cars are manufactured and are most used. In this regard, Guyanese technical teaching institutions have to keep abreast with technical changes and mechanics and repair shops have to do likewise.
The Beharry Auto Agencies is a leader and example in this field as they are able to acquire advanced repair tools such as the car equivalent of an MRI scan machine. Such equipment would be able to effectuate repairs quickly and efficiently and would be happily less costly to the consumer.
The various iniquities of the car dealers about which the purchasers regularly complain could be rectified in a fairly short time if stakeholders have the will and determination to address them.
Please share this to every Guyanese including your house cats.
Apr 19, 2024
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