The Bahamas Motor Dealers Association (BMDA) is urging the government to impose a title system on vehicles as a means of reducing crime and boosting revenue.
According to the association's latest report, car sales in Nassau increased 17.28 percent in 2012 compared to the previous year. However, that figure is deceptive for a number of reasons, said Fred Albury, owner of Executive Motors and president of BMDA.
Sales are still 42.48 percent down compared to 2007 levels, he explained. But most importantly, just 20 percent of sales last year were new cars.
The Bahamas still suffers from an influx of old and wrecked vehicles, Albury explained, and a lack of age restrictions and the absence of titles mean consumers never really know what they are buying.
Used cars are also a target for thieves, by fueling what Albury called a "thriving" stolen parts industry.
Meanwhile, a surplus of wrecked and used cars hurts sales among more reputable car dealers.
"We have a solution that could be a revenue source and curtail crime," Albury told Guardian Business. "This country needs a proper database and controlled system. When you buy a car, the title is issued. If you owe money to the bank, you cannot transfer the ownership without that
title.
Wrecked cars coming in should be titled as salvaged vehicles. The big scam is bringing in a wrecked vehicle and selling it to someone who doesn't know after fixing it with stolen parts."
The BMDA president argued that the titles could be administered by the government and bring untold dollars into the public purse. It would also reduce crime and protect insurance companies, banks, and most importantly, the consumer.
"It would be a small fee to pay compared to what is happening now," he added.
The proposal is just one of several recommendations laid out by the BMDA in its annual report.
Dealers are renewing their call to reduce import taxes on vehicles and hope to present their case to government in the first quarter of this year. Under the previous Free National Movement (FNM) administration, the duty on various types of vehicles was increased by more than 20 percent .
High taxes go straight to a dealership's bottom line and discourage Bahamians from buying new cars.
"Auto sales are totally dead," said Larry Albury, general manager at Freeport Jet Wash Auto Mart in Grand Bahama. "When the government changed duty rates, it killed it. It stuck a knife in our heart and we died."
Bonded vehicles, or those on special order where companies subsidize the purchase, have kept this particular dealership alive. But high duties on cars has indeed been a persistent grievance among all dealerships.
In its report, the BMDA also highlighted the need for authorization of LoJack and similar vehicle tracking systems, and perhaps the putting in place of incentives among insurance companies for those introducing such technology.
The report further noted that, when it comes to the industry as a whole, many stakeholders are simply "treading water". However, most businesses have managed to keep up staffing levels and benefits despite a difficult economy.
"Of course these issues fall under a number of government agencies, including finance, customs and police, but we look forward to making some headway after these many years," the report stated.
Fundamental to the auto sector's success, however, is simply the improvement of the global economy. A tangible rebound in the U.S. will ultimately be felt domestically, according to Albury.
"Until then, we'll just have to live with it," he said.

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