Southern border export market: no need for wall
All of our discussions focus on immigration, but I would like to explore a more business-oriented conversation regarding our industry and the ongoing restrictions to exporting used vehicles into the Mexican market.
With new vehicles being built in and shipped from Mexico in the thousands each day to the U.S., why haven’t the industry PACs or any of our industry associations addressed the additional restrictions that the Mexican government has put on used-vehicle imports coming across their borders?
Today those restrictions include extremely high per-unit tariffs/fees, based on book value versus purchase price that have nearly doubled in the past two years. Add to this shrinking year, make and model options and slightly different criteria and wait times at each port of entry, and you have a limited flow that is constrained to less than 60 percent of 2014.
In an era of “free trade,” it would behoove us as an industry to push to mitigate these restrictions, thus driving the value of our aged (11.5 years on U.S. roads is the average) vehicles by creating greater demand and not the crazy Cash for Clunkers program of prior years.
To NAAA, IARA, NADA, NIADA: Please open up your vision to these issues to assist your auction partners in continuing to drive value for its consigning partners and not strictly focusing on new, slightly new and RAC units in the U.S.
To the Mexican government: Protectionism in this manner hurts small dealers in your country, poorer people who cannot afford newer cars and creates a negative perception of a trade partnership with the U.S.
To both sides: Start solving the problems of our industry, which can only benefit both in a win-win partnership.
Editor's Note: Jim DesRochers is vice president at Dealers Auto Auction of the Southwest. As with any contributed content, the opinions expressed in this and other editorial columns are solely that of the author’s and do not necessarily reflect those of Auto Remarketing or its parent company.