by MELISSA WICKHAM

FEAR.

That's the prevailing feeling among used car dealers in Barbados.

It's a fear of creditors breathing down their necks because they are unable to meet financial commitments; a fear of customers demanding their deposits back since cars are still impounded in the Bridgetown Port and a fear that they won't be able to feed their families.

But most of them won't tell you this because they fear being victimised.

Only a few brave ones, who say they have reached the end of their ropes, have broken their silence since the battle between the Customs Department and the dealers began in December last year with a number of cars being detained for suspected under-invoicing.

Many of them have been struggling to stay open while some have already become casualties.

"The real story behind this whole matter is the inability for some used car dealers to pay bills like rent and wages for staff. Banks and creditors are calling demanding their money and you don't have it because the cars are in the Port. There's a lot of fear; people are not answering their phones," explained Noel Euzebe, spokesman for the dealers, whose business Caribbean Motor Corporation is on the brink of closing.

He sold his last car in March and ever since, "I have been begging other dealers for a car or two to sell for a commission".

"I think car dealers have been treated callously by Customs and by Government. Government seems to be only interested in doing something for us now that the situation has got to the point where they might be sued for damages," he added.

The matter first became public in May when Shazar Distributors took the Comptroller of Customs and the Attorney-General to court after Customs impounded around 18 Toyota trucks, belonging to them, last December.

In June, the court ruled in favour of the used-car company, giving Customs 48 hours to assess duties, impose them and release the vehicles.

Used car companies thought this meant a victory for them all, however, they still complained of experiencing difficulties in getting their vehicles despite the ruling.

In addition, President of the Court of Appeal and Chief Justice Sir David Simmons later threw out an application by attorneys from the Solicitor-General's Chambers to have the High Court's decision stayed for six weeks.

Dealers like "Carlisle" have been barely making it for the past nine months.

He has been in the car business for 19 years but only branched into reconditioned cars nine years ago and currently has 30 cars in the Port worth about $1.1 million.

"It has crippled my business," the dealer said.

"I don't have any cars in my lot. I had to lay-off people – about eight employees. I'm the only one there now. I still get calls everyday. I have to keep telling customers 'The cars haven't come yet, just hold tight,'" he said.

"Carlisle" added that he paid duties on 15 of the impounded cars but didn't pay any on the remainder after Customs refused to release them.

The used car business was his main source of income and now, he hardly has enough to get by.

"Things have changed a lot; $50 means a lot to me now, even $5. Before, you knew that even if your overdraft was in the air you had no problems because the vehicles would sell.

"But these days, when the overdraft is going up and there is nothing to replenish it you're in trouble.

"I am angry. I feel betrayed by Government. You put a Government there to help you. It seems to me that only a certain set of people can survive or have the authority to survive in this country," said "Carlisle".

Another dealer, Richard Cummins of Chelsea Motors, said the problem with the used car business versus that of new cars was that there was "a very unlevelled playing field".

He recently received five of about 20 cars impounded by Customs and had to pay a storage fee of $11 000 for those cars. That, however, was only after he got the fee reduced.

And, although he paid the duties on all the vehicles, he's at a loss as to why they haven't released the others.

Cummins explained that while there was only an environmental levy of $150 on new cars, used cars were subject to a $2 000 environmental levy. Prior to 2005, the environmental levy on both new and used cars was $150.

"What makes it worse is that on top of that $2 000, we have to pay 45.95 per cent Excise Tax and we pay it on that $2 000 as well while new car dealers only pay 31.95 per cent Excise Tax on the $150.

"You have 15 per cent VAT that goes on on top of that; so that $2 000 really costs you over $3 000 when it is all calculated," he said.

Cummins said if used car dealers were driven out of business, the public would pay the price.

"There is the public out there that cannot afford to buy a new car for over $60 000 that would like to buy a good Toyota or Nissan for $36 000. So you are hurting the public.

"[Some of] the cars we have in the Port are Toyota Corolla Wagons – vehicles in the lower price range which the poorer person can afford to buy," he pointed out.

Cummins has been able to stay afloat only because of his son's foresight to open a car rental business.

He said his small company, which has been operating for close to seven years, usually sold eight to ten cars a month but so far this year, it only managed to sell about six.

"Fortunately for me, my son started the rentals and we have to lean on that. Without it we would have no income at all – I would've made nothing for the year."

As for the thinking that used car dealers didn't employ a lot of people, Cummins said this couldn't be further from the truth.

He noted that he directly and indirectly employed people from painters to mechanics since a lot of work had to be done on used cars to bring them up to standard.

While some dealers are trying to keep their heads above water, Dr Abdul Mohammed hasn't been so lucky.

He had to close his business Mohammed Motors this year, sending around 40 people on the breadline. He has one of the biggest quota of cars, about 40, in the Port.

Mohammed's business, which was operating from 1997, suffered a slow, agonising death as he got fewer and fewer cars out of the Port.

Prior to the current situation with Customs, he brought in 25 to 30 cars a month.

He blamed the absence of a functioning body for used car dealers, for the problems they are facing now.

"Unfortunately, our organisation is one that when things happen, we get together and do something and when nothing is happening, everyone goes his own way," he opined.

Mohammed said he refused to believe, at first, that there was a move to shut down dealers like him. Now, he isn't so sure anymore.

"Being very objective minded, I've tried not to think that there is some conspiracy to drive used-car dealers out of business but as time goes on, you can't help but think that is what is happening," he said, adding:

"As what came out clearly in the court case, Customs is acting against the World Trade Organisation's (WTO) principles. We don't want to but we might have to go to the WTO with our case. They make sanctions which could impact on the whole country."

Mohammed painted a bleak picture for the future of used car dealers saying even if they managed to get the impounded cars, most of them wouldn't be able to survive or re-open because the vehicles would've depreciated significantly.