Tag: vehicle valuation

Factors Affecting Vehicle Values

The present Jamaican Automobile Market is comprised of vehicles manufactured for various world markets and imported to Jamaica. Japanese Domestic, Asian, European, Canadian, and United States are some of the market models that are imported alongside the Local Dealer models. As such, a particular model vehicle may have features, engine types, drive train, and even body parts that may vary from that of the Local Dealer model. This factor makes the determination of Market Value a more intensive process.

Changes in Import Duties and Policies

These changes by the Jamaican Government have a major effect on the value of Motor Vehicles. Some changes make it uneconomical to import vehicles with larger engine sizes, and at other times the changes make importation again feasible. Another change had increased the age limit on used cars imported allowing an influx of older model vehicles on the market. Over the last 10 years the duty rates and import policy had been adjusted many times having a dramatic effect on automobile values on the Jamaican market.

Currency Value Changes

Any large change to the value of the manufacturer’s currency will have an effect on the local values of those vehicle models. Should the Japanese Yen dramatically rise in value, the cost of importing these vehicles automatically increases. Should the Euro dramatically fall in value it affects the vehicles imported from these markets. Devaluation in the value of Jamaican Currency also has an effect on vehicle values.

Dealer Price Adjustment

These usually take place with the introduction of a new model but may happen at anytime during the year. These adjustments have a cascade effect on the value of the older models. New models are usually sold at a similar or higher price that the previous model. There have been several instances in which there had been a reduction in the price of a new model being offered that dramatically affected the values of the older models. Usually for vehicle models with uncommon features, obtaining the price information from the Local Dealer may cause delays in the calculation of the value.

Visit MSC McKay for information on how to get you valuations reports today.

Why Valuate Your Vehicle?

Vehicle owners should ensure that they are not under-insuring a vehicle that has appreciated in value due to changes in economic conditions resulting in the inability to replace it in the case of total loss. Care should also be taken to ensure that they are not over-insuring a vehicle that has deteriorated in condition or value resulting in the paying of unnecessarily high Insurance Premiums. Many Jamaicans have learned through experience that many vehicles for sale may actually be incorrectly registered, (Click here for More Info) or may have been tampered with (Click Here for More Info). Being informed of the correct market value prevents conflict with your Insurance Company should a claim situation arise. 

The Jamaican Automobile market comprises of vehicles manufactured for various world markets and imported to Jamaica. Japanese Domestic, Asian, European, Canadian, and United States are some of the markets that are imported alongside the Local Dealer models. As such, a particular model vehicle may have features, engine types, drivetrain, and body parts that may vary from that of the Local Dealer model. This often makes it difficult to easily procure replacement parts for maintenance service or damage repair. In some instances, these vehicles are purchased under salvage titles, repaired and then imported into Jamaica.

Insurance Companies also require owners to do regular valuations due to the high incident of fraud in Jamaica with all types of vehicles. As such, they need to verify that the car you are insuring is still the same car as originally registered and that it is roadworthy.

So safeguard yourself when investing in the purchase of a vehicle!

Visit MSC McKay for information on how to get you valuations reports today.