To own a vehicle is probably in everyone’s dream, and right now might be the best time to buy that first car. This is because, starting from Saturday January 7, the Government of Fiji has begun its quarterly release of vehicle landing costs.
Over the years, the Consumer Council of Fiji has received numerous complaints on issues faced by consumers when buying a second-hand vehicle. And those issues could be about prices, safety or quality.
Consumers unknowingly have been paying exorbitant price for overused vehicles that frequently displayed less mileage after the winding back of odometers. Often the true quality of the vehicles is not reflected in the asking price.
There were instances where the true history of the vehicle was hidden from the consumer in the bid to quickly close a deal.
Only to be realised later by the consumers that the purchase was of a far lesser value than what they were made to believe. Such practices not only had a negative effect on the consumers’ pockets, but more so on their safety as well as that of the general travelling public.
Government’s initiative to publish the landing cost of vehicles in the media provides more information to consumers on the cost of importing the vehicles and the anticipated sale price. It will also assist in gauging whether duty reductions or increases are correctly applied and passed on.
Over the years, the Government has been foregoing duty in the hope that vehicle prices will be reduced for the consumers’ benefit. However with importers and businesses continually jacking up prices, it has become an excises in futility.
For example, it was discovered that vehicles that had a landing price of about $8000 were being sold to the Fijian consumer for about $28,000.
In this case, the dealer was charging more than 300 per cent as mark-up. While we understand that there are overhead costs to be taken into consideration at 300 per cent mark-up?
By publicising prices, it is hoped that consumers can now make better choices. Consumers will no longer have the dilemma of choosing between buying brand new vehicles and an almost similar looking second-hand vehicle however has internal defects that is not visible to the ordinary person.
Now that the appropriate information is in the public domain and with the announcement of reduction in fiscal duty, hopefully it should translate to falling prices because of a more transparent sphere to operate from.
The council also appreciates the decision to reintroduce offshore vehicles inspection by the Land Transport Authority in a bid to address quality issues. Japanese Export Vehicle Inspection Corporation (JEVIC) is now conducting inspection of all Japanese second-hand cars imported for use on Fiji roads.
This is a comprehensive exercise, which is mandatory for all such vehicles to be assessed on several aspects including, structural, vehicle condition, and odometer validity, among other things.
Such initiatives leave consumers better off in the sense that it eliminates the worry of unnecessary cost brought about by sub-standard second-hand vehicle purchases. The offshore vehicle inspection exercise ensures that vehicles sold in Fiji, particularly the second-hand ones, are worth of every dollar spent.
The council appreciates the various approaches taken by the Government to protect consumers who borrow money on high interest rate to buy vehicles in Fiji. However, it is also noted that as economic policy change, a few unscrupulous businesses may be tempted to engage in restrictive trade practices such as collusion and price setting.
With disclosure of landed price, the council is counting on strong competition in the second-hand vehicle industry that should drive prices down. Because with the current mode of practice, this desired outcome is not present. With vigilance from FRCA, LTA and FCC, the council hopes to see fair pricing on quality vehicles based on reasonable profits.
The council implores consumers to make smart choices when deciding on buying a vehicle, and please do shop around for the best deals. Consumers are also encouraged to keep up to date on the vehicle landing costs released by FRCA.
Consumers are advised to lodge their complaints or seek clarification from FRCA, FCC or with our offices in Suva, Lautoka and Labasa, or call the National Consumer Helpline toll-free line on 155 if one finds an unscrupulous dealer with unethical business practices.
