NASSAU, BAHAMAS — Bahamas Motor Dealers Association (BMDA) President Ben Albury said yesterday that the association is advocating for an end to the “archaic” policy of price controls on new and used vehicles as well as auto parts.
Albury, who is also general manager of Bahamas Bus and Truck, told Eyewitness News: “We have brought this issue before successive governments. We never seem to get very far.
On a new vehicle, if I end up netting eight percent or 10 percent, I’m lucky.
– Ben Albury, Bahamas Bus and Truck
“Every year, our expenses are going up. We just got our real property tax bill and it went up substantially. We are not able to adjust our pricing as the various costs to operate our business increase. We are not able to adjust any of our pricing.
“I haven’t been able to find another country that regulates pricing on vehicles. It’s archaic and really not necessary in such a competitive environment.”
According to Albury, the maximum markups or margins dealers are permitted on new and used cars currently stands at 25 percent and 15 percent respectively.
“On a new vehicle, if I end up netting eight percent or 10 percent, I’m lucky. The point isn’t for us to jack up the prices,” said Albury.
He added: “What would be nice is if there was an opportunity to get a special price, buy in bulk or get some type of concession that we would be able to make a percent or two more on what we are selling.”
According to Albury, removing price control should not have any significant impact on consumers across the board.
“At the end of the day, when I sell a car, I don’t think I ever make the markup,” he said.
“Normally, we work on very slim margins in order to be competitive and rely on good volumes to sustain our businesses.”
