With the downturn in the world economy, local auto dealers have been forced to slash margins and find creative methods to keep the cars rolling off their lots.

But, while dealers battle with jump-starting balance sheets amid the harsh economic climate, car buyers were benefitting from the reduced prices.

President of the Automobile Dealers Association (ADA), Kent LaCroix confirmed that industry sales had declined by 50 per cent and this was having an adverse effect on the industry.

Richard Reid, sales manager at Kingston Industrial Garage (KIG) Ltd, confirmed that sales are slow.

"We have significantly cut prices to move stock," Reid said.

"We are cognisant of the fact that customers are going through trying times and we have to be flexible ... within reason," he added.

more leverage

Reid's counterpart at ATL Motors, Chris DaCosta, thinks that consumers now have more leverage.

"It is absolutely a buyers' market," he said. "We [dealers] have to do what is necessary to make the sale ... as cars depreciate in value with each passing day."

DaCosta, whose company is the local distributor for Honda, said dealers have over 2,500 new cars sitting in bonded warehouses across the island.

Sandra Lyn Shue, managing director at Executive Motors, said she was disappointed that the Government had not met dealers half-way.

"It's crazy," she said. Lyn told Automotives that her company had cut margins by as much as $300,000 in some cases to move stock.

reduced prices

DaCosta said ATL has reduced some prices by over $500,000 and in addition, added a bonus.

"We've added a package to the sale of every car ... a 32-inch flat-screen TV and a three-day weekend for four or we give a weekend for two at Beaches resort."

In March, both new and used-car dealers met with Don Wehby, then minister without portfolio in the Ministry of Finance and Public Service, to discuss challenges facing their sector.

The Automobile Dealers Association and the Jamaica Used Car Dealers Association (JUCDA) had sought a roll back of the special consumption tax (SCT) and general consumption tax on cars. The groups contended that these benefits would have been passed onto consumers. However, their request was not granted.