Rent-a-car sector hurting

Thieves, illegal operators dampen revenue

Chad Bryan, Gleaner Writer

Legitimate rent-a-car agencies, although currently enjoying a revenue spike during this summer season and anticipating another upswing at Christmas, are still grappling with the effects of informal car-rental businesses on their industry.

In addition, there is the pervasive theft of rented cars, with legitimate businesses losing 165 vehicles to criminals over the last three years.

President of the Jamaica Rent-a-Car Association (JARACA), Diana Stewart, has pointed out that the illegal car-rental activity is so pervasive that JARACA members have reduced their vehicle purchases.

"There is a very, very large illegal rental-car business going on. It is much bigger than us and that has affected us badly, because we are down from buying 800 cars a year to 396 cars a year. So you can tell how badly business has fallen for all of us. For the moment we are doing well, because this is summer peak time. We also have this at Independence and during the Christmas period," Stewart said.

ALTERNATIVE AGENCIES

Stewart pointed out that persons tend to rent motor vehicles from their associates. In addition, persons arriving in the island are being enticed by touts at airports to rent vehicles. She noted that the trade is longstanding.

"This trade has been going on for 15 years. I brought it up in Parliament last year February that the Government was not getting revenue from the illegal rent-a-car agencies and that it was affecting us badly, because we weren't retooling as we should," Stewart explained.

Stewart explained that vehicles such as the Toyota Corolla and Honda Civic, as well as various Mitsubishi makes which are rented from legitimate rent-a-car dealers are used by unscrupulous individuals in criminal activity.

Stewart recounted a recent incident which underscores how long it can take for the practice to be detected. "Island Car Rentals had lost a vehicle 15 years ago, a stolen Honda. When the police pulled the vehicle over and asked for the papers, they were presented with perfect replicas. The car had been passed by the Examination Depot, the collectorate had licenced it. The vehicle had been rented by an obeah man and was allegedly used in the commission of several murders," Stewart said.

Therefore, during a meeting with Deputy Commissioner of Police in Charge of Operations Glenmore Hinds, JARACA requested that when the police do a document check on a vehicle rented from one of its members, a contract should be presented.