If you are living in Jamaica, you must have been searching for a vehicle. Without a doubt, a car is one of the best means of transportation in this country. According to Jamaicars.com, the cost of either new or used cars has been rising steadily over these years.
This happens to all car manufacturers and brands. With many countries, this is not that big of a deal, since the rise is considered small. However, this change can greatly affect the budgets of most Jamaicans. We will take a closer look at this issue, and find out the right amount of car cost in this country.
The Increasing in Price of Cars
With the price of used cars in Jamaica in the year of 2015, we can have a new vehicle with MD $1,400,000. However, the price has greatly increased in 2020. With the same car, you need at least JMD $1,600,000, sometimes even more. The average price, even though quite small, has been varying every year. This applies for both used and new automobiles.
Another example is the truck and passenger vehicle price. To be more specific, the average price of passenger automobiles is around JMD $1,500,000 to JMD $1,600,000, while the truck price is somewhere JMD $1,900,000 and JMD $2,000,000.
Reasons for the Increasing in Car Price
There are causes for everything in life. The increasing car price around the world also has its own explanations. So what is the reason for this?
The first reason is the incentive rising. We all know that dealerships need to meet a certain quota, which is the main reason why the price for automobiles is increasing. The second factor is the growing demand for cars. To be more specific, everyone wants trucks and SUVs.
They are a bit costly compared to most passenger cars, and they are really famous not just to Jamaica but to the world. The last reason is inflation, and it is unavoidable.
How much Does a Car Cost in Jamaica
The Car Cost in Jamaica
Let’s take a new Probox, 2014 with automatic transmission as an example. According to Jamaicars.com, the average price is JD $1,222,500. This is the average price for similar automobiles in the market.
However, the price of the car is just one factor. You cannot just walk into the bank, sign up for a loan and drive a car right away! There are many things around this process.
One of the biggest things to take into consideration is licensing. In Jamaica, you need to license your cars as well as have new plates. If you are buying used cars for which the registration has not run out, you do not need to. And depending on the rating of the cc for the automobile, the cost varies.
However, the price range is around $12,000 and $18,000 for just licensing the car. The price for the plates will be a different price.
Percentage of the Loan Amount
The next thing we need to know is the loan amount percentage. Six years ago, most institutions only offer 100% financing on both used and new cars. Nowadays, it is not the case.
Sometimes, you might not be able to loan so it is crucial to research the desired vehicle beforehand.
We cannot forget Insurance when you want to have a car. And by far, this might be the largest sum you have to pay beside the car price. This is, just like license price, depending on the automobile’s value.
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The more expensive the vehicle, the higher the insurance costs. A few things like the engine’s type, alarm system,… will be taken into account.
This is another thing to keep in mind. Repair cost is the essential thing to remember, especially when you want to buy a second-hand vehicle. In the first few months of driving, a new car can still go quite smoothly, yet things will be quite different with a used car.
With our calculation, $20,000 is the safe amount of cash to prepare. Beside that, the older the automobile is, the more money you should be prepared for the repairs.
Titling and Fitness
Even though these are just minor fees, fitness and titling cannot be underestimated. If you have a used car, there is a minimal transfer cost to be worried about.
So it is better to save around $10,000. This money is to ensure the safety use of the car, and to transfer it under your name.
Last but certainly not least, we have the personalisation cost. We understand that all of us want to add many different features to our car. Alarm system, for example, is a good feature to invest in.
Not only can it save the insurance premium, it can also protect the vehicle. And of course, there are many more. We recommend to save around $50,000 to cover this.