Car dealers in foreign currency challenges

PERSISTENT foreign exchange shortages have hit car dealers who fear disruption of their business as their stocks are running out.

General manager at AutoWorld, Mr Mike Batch said the shortage of foreign currency in the country was affecting viability of their business as they mostly rely on importing vehicles.

"There is no foreign currency which can help us to import vehicles and there is no facility from the banks to offer us loans that can keep us in the business," said Mr Batch.

He said demand for vehicles was there but the only problem was that there were no vehicles to sell.

"Currently we are having our last stock of vehicles and I don't know how we will survive and this forces people to buy from outside," added Mr Batch.

Other car dealers urged the Government to put import restrictions to protect them as they are registered and pay taxes.

"More people are buying cars from South Africa because they say it is cheaper there compared to buying locally," said one of the dealers who only identified himself as Keith.

Another car dealer, Mr Nicodimus Shoko said the importation of cars affects their income as they get paid on commission.

"We sell cars on behalf of owners and we negotiate a commission so that both parties gain at the end of the day," said Mr Shoko.

Managing director of Quality Motors, Mr Itayi Chifakanye said the market was too liberalised as it allows individuals to import vehicles at Musina and other places without an import licence.

"People just go and buy cars from outside without having knowledge and expertise. Before one buys a car there is a lot to check on, for example engine and critical parts," he said.

Mr Chifakanye said it was illegal for individuals to put "for sale" stickers on their cars saying one needs to take the vehicle to car dealers for sale.

"The city council made a directive against individuals who sell cars on their own and this is positive to our business," he said.

However, some members of the public insisted that importing a car was a better option than buying locally.

"The price being charged here is high and I think it's better to buy from South Africa," said Thomas Dube, a local taxi driver.