The influx in used cars into Zimbabwe, as in the case of other African economies characterised by low-income among its citizens, was causing headaches to town planners due to increasing congestion on the roads.
“The slump in the used car business might come as a blessing in disguise for town planners as they battle to ease traffic congestion. On the other hand, government will lose out because it was raking in millions of dollars from the duty every month,” said Makwiramiti.
Those that can still afford to are capitalising on the slump in business that has caused a fall in prices, with sedans that used to cost $5,000 now going for as low as $3,000.
Respected economist John Robertson said flooding of the local market with used cars had affected the viability of locally assembled vehicle businesses while denting volumes of imported new cars.
“Cheap imports are never good for locally manufactured goods and we have seen this in the textiles industry. So, a slump in used car imports might bring hope to local assembley plants,” he said. “However, that would mean only those with money will be able to buy the cars while the majority goes back to public transport.” ∞∞∞∞∞ MORE »»»»