SANTO DOMINGO. - New car sales in the Dominican Republic have fallen more than 50% so far this year compared with the same year ago period, a situation that concerns the official dealers grouped in Acofave.

It’s president Fernando Lama said the main cause is the “dramatic” interest rate increase from 10% to more than 30%.

Besides the rise of the dollar’s exchange rate, the large amount of used autos that enter the country in violation of the norm that bans vehicles older than five years is another cause, said the executive in an interview by newspaper Listin, accompanied by Acofave members.  He said from 2,304 units sold in April, sales fell to 1,322 in August.

Cut in half

Acofave also denounced the imports of vehicles cut in two. “Here there are vehicles that are imported cut in two, they stick them toether, give them body filler, you see them identical and don’t realize that they came cut in half, Lama said.

He said that’s done to lower transport cost and to try to evade Customs taxes when they’re imported as parts and not as whole units.