Used car sales what's in the future for Canada
As talks continue across the globe about the ban on older vehicles one country has followed through. While this new law may be inviting from an environmental point of view it doesn't come without major implications especially in a time where the economy is so fragile. The banning of older vehicles will only add to the decline of car sales and therefore damage the economy further. If other countries follow suit this will take money out of every ones pocket - everyone accept large greedy consumer financing companies. Small used car lots and large automobile dealerships will feel the wrath - when they feel it the economy will feel it as a whole also. A move like this will force more people to buy new; meaning that we will only be adding to the current credit crisis. For the middle and lower incomes citizens a law like this will leave them without affordable transportation, force them into further credit debt or leave them car less.
Our environment is a major concern - perhaps a Federal law for annual vehicle safety's and Federal emissions laws should be imposed before we start banning vehicles based on age and we should look deeper into converting older cars to bio-fuel.
I find it interesting that this ban comes at a time when Canada/US/Mexico are in their final stages of their Globalization NAFTA deal, in a time when the car economy is weak in the USA and Canada and that this law takes place in a country where our automotive manufacturers have moved after closing the doors here. This sounds much more like an economic strategy than an environmental strategy.
See the following articles:
Mexico abruptly restricts car imports
By CHRISTOPHER SHERMAN Associated Press Writer
Article Launched: 03/02/2008 12:37:30 PM PST
http://www.contracostatimes.com/nationandworld/ci_8429774
Texas—Some are dented, scratched and rusty. Others rattle and belch under faded paint jobs. But the "'98" soaped onto their windshields and a surprise change in Mexican import rules have turned a single year's worth of used cars into pick of the used-car lot.
Beginning Monday, only cars made for the 1998 model year—none older and none newer—can be legally imported into Mexico. Car dealers were given notice only a month ago.
Until now, used cars 10 to 15 years old were scooped up at auction by South Texas used car dealers and rapidly sold to Mexicans hungry for affordable transportation and "la novedad"—or novelty—of unfamiliar makes and models.
Cars newer than that were banned from imports as unwelcome competition for Mexican car dealers, and anything more than 15 years old was seen as a potential environmental and safety hazard.
But now, under pressure from Mexico's new car dealers who say "vehiculos chatarra," or jalopies, undercut their sales, the Mexican government is allowing only 10-year-old used cars to be legally imported into Mexico.
All of a sudden, 1998 Luminas, Astro vans and Ranger pickups are sought-after trophies.
The Mexican Association of Automobile Distributors, which pushed for the change, said it was needed to "stop the accelerated conversion of our country into the world's biggest automotive garbage dump."
The Mexican Consulate in McAllen said the change was made "to
restrict the entry of vehicles that compete with the Mexican car industry."
A mile north of the Rio Grande, 80 percent of the customers at Walester Auto Sales are Mexican. But this past week, only one out of the 24 cars on the dirt lot boasted the magic "1998."
That vehicle was a white Chevrolet Blazer with a "Redneck" sticker on the windshield and a vanity plate of a silhouetted couple embracing in front of a tropical sunset. It was priced at $3,200.
With the sudden change in demand, such 1998 models are appreciating for the first time since they rolled off the lot, their prices rising by $500 to $800, while dealers cut prices on slightly older models in a frantic effort to move them out before Monday's deadline.
"At this point we have a lot of merchandise that was going to Mexico that now will stay," said Elena Garcia, who owns Walester with her husband, Armando Garcia, who was in Florida scouring auto auctions for more vehicles.
At Gutierrez Brothers, a few Mexican car dealers milled about, shaking their heads at the limited selection.
"The worse thing we can do is buy something that we don't know if it can go across (the border)," Juan Gutierrez said. "If a 1997 worth $3,000 can't cross, it's not even worth $1,500."
He had to unload about 1,000 cars last month at sharply reduced prices just to avoid getting stuck with them in March.
Gutierrez said his buyers at auto auctions across the country tell him that when a 1998 rolls into the garage, 20 buyers line up where there used to be a handful.
Mexico bans all imported used cars from U.S. except 1998 models
Posted Mar 3rd 2008 7:32AM by Chris Tutor posted on AUTOBLOG
All you people with a 10-year-old car – drive it, drag it, push it or pull it! Mexico is paying top dollar!
Starting today, the only used cars the Mexico government will allow across its borders for resale are those exactly 10 years old. That means your 1998 Hyundai Accent has appreciated in value for the first time since you drove it off the lot. But your 1997 Astro van is, believe it or not, worth even less than it was last year, and you 1999 Daewoo Nubira drivers will have to wait until next year to cash in.
There are two main reasons for Mexico's seemingly arbitrary automotive adjudication. First, its new-car dealers are tired of trying to compete with all manner of relatively inexpensive, recent-model used cars from the U.S. Second, the government says cars older than 10 years are wreaking havoc on the country's air quality.
Until now, it was legal to import cars into Mexico that were between 10 and 15 years old. The Mexican Association of Automobile Distributors fought for the newer, more restrictive law to, as quoted by The Detroit News, "stop the accelerated conversion of our country into the world's biggest automotive garbage dump."
