4:06 pm, Wed December 23, 2020
Used car dealers have issued a grim outlook for the sector during the first half of 2021.
President of the Jamaica Used Car Dealers Association, Lynvale Hamilton, told the Financial Report that this year has been a roller coaster ride for the sector with sales declining at the outset of the covid-19 pandemic.
According to Hamilton, the sales have recovered slightly but are no where near pre-pandemic levels.
“The first quarter was where we were hardest hit . At that time we were down by about 20 percent sales and that went up by the second quarter. The third quarter we saw some rebound - and we saw things dip a bit in the early part of the fourth quarter and it has been like that. We saw some uptick in sales recently.”
In a rush to get older cars off the lots before the year comes to an end, auto dealers have been rolling out payment holiday and discounts, to woo potential buyers.
The month of November usually marks the beginning of a busy Christmas season for car dealers who cut discount deals on older vehicles to get inventory moving. But now,a at the second week in December, car sales are down 70 per cent compared to 2019 levels, largely as a result of the economic fallout from the COVID-19 pandemic.
The changes in the market are forcing car dealers to get more creative in how they attract buyers, and have sparked new partnerships with banks and other lenders.