Yet another insane decision if it's true

[root]

This can't be right! It will become yet another cause of inflation if you need to get rid of old cars. A large part of UAE economy relies on these older cars.

I thought the purpose of the yearly checks is to make sure the cars are healthy, so why the age limit? We don't even have a car industry like the Japanese that we want to sustain by this legislation!

Lets hope this is just one of those mis-informed quotes that get refuted day after by RTA.

From KT today

Old vehicles to go off road by Jan
ABU DHABI — By next January, 20-year-old light vehicles would go off the roads and the import of cars manufactured five years back would be banned, according to a senior official at the Ministry of Interior (MoI).

Colonel Ghaith Al Zaabi, Director-General of the Federal Traffic and Patrol Department in the MoI, told Khaleej Times yesterday that the decision of the Cabinet’s Services Committee is aimed at regulating licensing of light and heavy vehicles with the objective of reducing the rush on roads and to protect the environment from the emissions of the old cars.

He said that licences for cars manufactured in or before 1988 would not be renewed. He advised the owners of such vehicles to not apply for licence renewal from January 2009.

The licences of cars manufactured 15 years ago would not be renewed from January 2010, he added. According to Ministry of Interior’s latest statistics, the UAE has 1.8 million vehicles of different makes and manufacturing years. Import of used light vehicle would be allowed if it is not more than five years old and in the case of heavy vehicles not more than seven years old.

The decision also bans transfer of licence of vehicles aged more than 10 years. “It means that if you have a light car that was manufactured 10 years ago, you would not be able to sell it to another person,” Col Al Zaabi clarified.

However, vintage and classic cars have been exempted. “The classic and historic cars can be imported, if they fulfil the requirements of the technical check,” added Al Zaabi. Licensed taxis would be allowed to get renewal just for five years from the date of production of the car. The Ministry of Interior will coordinate with the National Transportation Authority to implement the decision.

[T.N.T]

Oh no!
My project car dream is ruined if the import of cars older than 5 years is banned

[root]

yeah, it will be time to move out of UAE if this happens
No more fun anymore!

[aerslan]

somethings make sense, but not being able to sell a car made 10 years old thats just doesnt sound right

that will mean used cars will become dirt cheap, but will fetch no more than a paper weight when its time to sell them.. that not only forces people to buy new cars more often, but less expesive ones as they'll be completly worthless in 10 years.. Expect the driving dynamics on the road to really change if this gets implemented

[root]

This will shutting down Al-Awir complex and also the new one in Abu Dhabi as well.

I doubt this will happen!

[T.N.T]

This will shutting down Al-Awir complex and also the new one in Abu Dhabi as well.

I doubt this will happen!

True!

[root]

Some reaction from dealers! I agree, that not many drive 20 year old cars (and also 20 year old cars in good shape are called Vintage)...but the 5 year ban on used cars is going to hit business.

From KT on 17-June-2008.

20-year rule has old car dealers worried
DUBAI — With the recent decision of the Ministry of Interior (MoI) to stop registration of 20-year-old vehicles from January 2009 onwards, used car dealers in Dubai and Sharjah are a worried lot. What worries them most is the decision, according to which, import of light vehicles more than five-year-old will also be stopped. As per the decision, the import of seven-year-old heavy vehicles will also be banned.

A number of used car showroom owners told Khaleej Times they import 10-15 years old light vehicles from places like the US and Japan. According to them, the used car business would be hit badly if the clause was not amended by the authorities.

Colonel Ghaith Al Zaabi, Director-General of the Federal Traffic and Patrol Department at the MoI, had told Khaleej Times on Sunday that the decision of the Cabinet’s Services Committee concentrates on regulating licensing of light and heavy vehicles with the objective of reducing traffic snarls and protecting

the environment from the polluting emissions. The official had noted that from year 2010, vehicles which are 15-year-old, would not be allowed in the streets.

An official of the Al Heerah used car showroom in Sharjah said, "This is bad news for used car showrooms. On an average, each showroom imports at least 25 old cars from countries like the US and Japan every month. Most of these cars are 10-15 years old. We have brands like Mercedes, BMW, Opel etc coming from Japan. From the US, we have cars like Nissan Pathfinder, Grand Cherokee coming in. This move will hit used car business."

He added: "They should increase the five-year bracket for imports."

Naved, a representative of Al Attar used car showroom in Dubai said the move to ban 20-year-old vehicles would have little impact in Dubai. "If you talk of Dubai, there are not many people driving the 1988 model cars. Moreover, we don’t deal with vehicles which are that old. A majority of used car showrooms in Dubai deal with vehicles which are a maximum 5-10 years old," he said.

The representative, however, added that the import of used cars would be affected.

"The 20-year-old ban would mainly affect the Sharjah used car market as there are many showrooms there which deal with very old cars. But then the import business would get a slap. We are currently waiting for an official statement from the authorities which will confirm this," said Rajan Sareen, a sales executive from the Al Barad used car showroom in Dubai.

Representatives of some other showrooms in Sharjah also said the authorities should consider registering those vehicles which are in good shape and do not pose any environmental risks.

Earlier, local media reports had stated that the National Transport Authority would be recommending a system under which the owners of old cars could be compensated, in any way, by the respective transport authorities of the different emirates.

[root]

The saga continues...this time with the New Car Dealers trying to play down their triumph!

This "new law is good for used car dealers" is the biggest BS I've heard in a while. It's funny how media can be manipulated!

This time from Emirates Business 24x7

UAE: New policy to boost sales of used cars
The UAE used car market is expecting boom times in 2010 after the Ministry of Interior's decision to ban the transfer of ownership of more than 15 years old vehicles comes into effect.

Many car dealers that Emirates Business spoke to felt that people who would be forced to discard their old cars when the order is implemented would buy affordably priced used cars as replacements. Their financial situation would not enable them to buy new vehicles in significant enough numbers to impact new car sales, the dealers predicted.

Michael Ayat, general manager of Arabian Automobiles, the Nissan agent in Dubai and the Northern Emirates, said the ministry's decision will revive the UAE's used car market. He thought it was unlikely that anyone using a car that was 15 years old or more would be in a position to afford a new car.

Pointing out another effect of the new policy, Ayat said it will revive the re-export trade, especially to countries that allow the import of old cars, such as some in Africa. In addition, the withdrawal from the roads of about 20,000 cars emitting carbon dioxide will have a positive environmental effect, he said.

Speaking about the effect of the decision on the prices of new cars, Ayat said the prices of Japanese cars had remained stable after increasing between five and 10 per cent in March. He said the decision will have no direct effect on prices in the foreseeable future. Sales of new cars, especially high-end and luxury ones, are already undergoing a big increase due to the country's thriving economy, he said.

At Ford, Hussein Murad, sales and marketing director for the Middle East, said: "This legislation will surely energies and activate the local automotive sector. Pre-owned sales as well as re-export sectors will especially see heightened activity."

Speaking about the impact on new car sales, he said: "We at Ford don't think this would directly impact our new vehicle sales, as we believe owners of cars that are 15-20 years old are more likely to opt for a newer pre-owned vehicle as opposed to a new one." He added that the pre-owned sector will see the greatest benefit.

On the environmental side, Murad said the step will surely help to bring cleaner vehicles on the roads as new cars are equipped with catalytic converters and cleaner engines than old models.

And the advanced safety and handling technologies of the new vehicles would contribute to increased safety on the roads, he added.

By Hamed Al Sewerky

[root]

Some more close to reality are the ordinary consumers!

So, now the 3000 AED/month earning plumber will not buy a 10-year old imported Toyota in good condition, but a run-down traffic-hazard 5-year old Chinese Chery as that's all he can afford. I really wonder which is safer.

Banning old cars 'will not make roads greener'

By Mariam M. Al Serkal, Dina El Shammaa and Fuad Ali, Staff Reporters
Published: June 22, 2008, 00:14

Dubai/Abu Dhabi/Fujairah: A car more than 20 years old will soon be an unfamiliar sight on the roads, as authorities intend to get them off the streets as of next January 1.

The Ministry of Interior announced that the decision to ban cars more than 20 years old aims to ease traffic congestion and to curb pollution.

The process of phasing out old cars will be completed in stages.

Traffic departments nationwidce will stop registering or renewing licences for vehicles more than 20 years old as of December 1.

City Talk took to the streets and asked residents whether vehicles more than 20 years old should be banned from the roads and whether it will ease traffic congestion and help reduce pollution.

Mohammad Ahmad, a 23-year-old Emirati police officer, said: "This is bad news because there are many people who cannot afford expensive cars, and that is the reason why they chose to buy old cars in the first place."

Prathap Kumar, an accountant from India, 40, said: "I think it will be a good move to decrease pollution and traffic, but basing the issue on just the age of the car is unfair.

"There are many people who take care of their cars and drive safely whereas others with newer models do the opposite."

Zubair Ahmad Khan, transport supervisor, Pakistan, 50, said: "Some people cannot afford to own a car, so they use an old one. If the car is owned by an individual, I am sure the person will take good care of it. If it's owned by a company, there is not one particular person taking care of the car. Also high humidity in the UAE causes a car to rust and this affects the car's suspension.

"Cars whose age exceed 20 years may not be reliable nor safe to drive, so phasing them out may help reduce accidents on roads."

Mohammad Ashraf, e-marketing specialist from India, 25, said: "It is a good idea because it will reduce traffic and it will protect the safety of drivers.

"But I do not think that it will have any impact at all on the environment because there are still a lot of cars on the road, and the industrial factories probably make up the bulk for most of the air pollution."

Elvecia Kapoor, 31, a senior registrar from South Africa, said: "A car more than 20 years old should be banned because it's not road worthy anymore.

"Phasing out old cars will encourage safety but will not ease congestion nor protect the environment because there are other cars out there on the streets. Whether old or new, cars do pollute the streets. I know how to drive but don't own a vehicle nor drive because we have the privilege of public transport in the UAE, which is moderately cheap, reliable and accessible."

Surendran Attassery, a car mechanic from India, 48, said: "If you are taking good care of your car there will not be any congestion at all. Actually old cars are safer than new cars in my opinion, especially on highways, due to their large bodies. Nowadays cars have slim bodies made out of plastic. The design is not as strong as it used to be and the protection is way less, which makes it a harmless environment altogether."

Khalid Salah, an Egyptian sales manager, 40, said: "It is a good idea because old cars are usually less maintained and are a safety hazard to passengers, because if they do not have the budget to buy a new car then they probably do not have the means to maintain it.

"But it will not reduce traffic on the roads because instead of driving their old car they will now be driving a new and cheap car."

Dileep Devan, 33, a sales executive from India, said: "I can see both sides to the argument.

"For example, the benefit to the environment would be good because you will take many cars of the road, but at the same time many lower income people will suffer. The issue of pollution caused by cars is a complicated one because not all older models are in bad condition. The focus should be on the condition of the vehicle and not just its age."

Mohammad Mustafa, a restaurant owner from India, 45, said: "If I have a car in good condition and it does not produce more fumes than other cars, then why should I have to give it up and who is going to compensate me for my loss?

"They should carry out tests on vehicles first to determine whether these should be taken off the road and not just throw a blanket over all cars of a certain age.

"Many people will find it hard to replace the older models because that's all they could afford, so how would they get about? They can't just pay for taxies for every journey."

[T.N.T]

The only thing that I see happening thanks to this rule is the worries of people with less income increasing.
Nice point root, a 10 year old Toyota is still better than a 5 year old Chery.

[root]

The authorities really need to listen to the people. The people making decisions are sitting in their ivory towers. It's probably OK for Dubai to have rules like this once the Metro and public transport system is up and running and people can move around without needing a vehicle. But before that, how do people get around?

Also, what about Abu Dhabi, Sharjah, Ajman and other Emirates??
I wonder really who benefits off this? The Taxi companies? The new car dealers?

Can't be good for the cost of living here!

I'm all for stringent rules on pollution and keeping off polluters off the road. But a well-kept vehicle should not be punished just for age.

From KT today!

Concern over norm of 10-year-old cars
DUBAI — Used car showrooms and car dealers in Dubai and Sharjah are inundated with frantic calls these days. Owners of light vehicles want to sell off their 10-year or older vehicles to them. And they want to do it as soon as possible.

This follows the recent announcement of the Ministry of Interior banning transfer of registration of cars more than 10 years old. The rule is to be effective January next year. The decision implies that while the owners of 10-year old vehicles will be allowed to renew their car registrations, they will be prevented from transferring the registration to others from January 2009.

Motorists complain that 10-year old vehicles are technically 'not old' not to allow their re-sale. But the new rule will leave them with little options, they say. They'd have to either sell off the 10-year old cars now or try and export it to their home countries later.

While most of the used showrooms make it clear to them that they do not deal with very old cars, others offer to buy these cars "only as scrap".

"I have a car which is almost 10 years old now. It's in a pretty good shape and I don’t want to sell it off right now. But with this decision, I am forced to seriously consider selling it off, at whatever price I manage to get," says Saifur Hassan, a Bangladeshi national working with a real estate company in Dubai.

Another motorist who recently purchased a 1999 model Toyota car says, "I had decided to purchase a used vehicle to be able to perfect with my newly acquired driving skills before I could go ahead and purchase a brand new car after two years. But the new rule has turned my plans upside down. I now want to sell the car at whatever price available and purchase a new car at the earliest. I am sure that under the current situation the market price for used cars of 10-plus years will be very low."

Motorists also rue that the option of exporting their used vehicles to their home countries is not a very wise one, thanks to the steep duty and transportation costs as well as freight charges.

Says Sukumar Roy, an Indian national working with a Dubai bank: "I have an 11-year old Honda Civic car and I'll prefer to send it to India rather than sell it off here as scrap. However, I have been informed by dealers that the cost of changing the steering wheels from left to right comes to Dh7,000 or even more. Then, there are the exorbitant shipping charges. With so much investment, I can very well buy a branded new car. I am in a fix what to do!"

Meanwhile, an official of the Al Dahud Used Car Showroom in Dubai said he had received calls from motorists who wanted to sell off their old vehicles before the end of this year.

"But then most of the used car showrooms don’t deal with that old vehicles. We can only buy it as scrap material. For example, an 11-year-old Honda will fetch only Dh1,200-1,500," the official pointed out.

Another car dealer said that since there would be no takers for 10-plus year cars in the future, it's not a feasible option to purchase these cars now. Motorists say once the new rule is enforced, there will be no buyers for their old vehicles. They will be either used by the motorists until they lose their road worthiness, or they'd be forced to dump them as scrap.

Motorists say the authorities should take necessary steps to either compensate them for their old cars or facilitate their exports.

Earlier, Ali Abdulla Al Jasim, Director of the Licensing Department at the Roads and Transport Authority had ruled out any kind of compensation for owners of old cars

[T.N.T]

This is bad. Someone needs to tell the government that its wrong!

[rbdxb]

Hi,

I need a clarification on this issue. to summarise it...
- a car which is more than 10yrs or cannot be sold.
- a car which is more that 5yrs old cannot be imported.
- a car more than 20yrs old cannot be driven. By 2010 a car which is more than 15yrs old cannot be driven.

now, i drive a E220 - 1995 it is in very good condition and do not plan to sell it. As you see it in not 20yrs but by 2010 it will be 15yrs. so does that mean that this will not be registered any more beyond 2010. i.e. i have only about 1-1/2 yrs with the car?

what do you suggest we sell it off now or later at throw away price?

Request your feedbacks...

Root: i see you drive a Audi '93 same case.

[root]

Yepp!
It sucks. I love my car, and it runs fine. (One reason for me to start this online campaign if anyone hears us!)

From what I see and read, everyone in a situation as us is now trying to sell their cars...and for buyers there is not really much of an incentive. So, its a good time to grab some cheap good vehicles. But it also means that afterwards it has to be exported somewhere.

[rbdxb]

Yepp!
So, its a good time to grab some cheap good vehicles. But it also means that afterwards it has to be exported somewhere.

Sad but true, i also see a bit of disconnect in the "cheap good vehicles" for eg. the latest post of car for sale on this website is a E230 - 1996 selling for 21K. i would not say that this is a good bargain as it would mean writing off 20K in 2years !!!