Automotive Service Trends in the Trinidad and Tobago

With the release of the 2020-2021 budget and the new taxation structures imposed on vehicle imports, some interesting trends should emerge over the next few months. Capital Equipment feels the following changes will materialise in the next few months: 

Lower Interest Rates/Extended Loan Repayment periods

Covid has definitely taken a toll on many businesses resulting in reduction in sales and revenues. From the demand side many potential car owners naturally have been affected resulting in them either purchasing lower priced vehicles or in some cases delaying vehicle purchases until some level of comfort returns. We believe that financial institutions will not only become more restrictive on financing but will also try to offer more buying incentives including lower interest rates and longer payback periods, as new car loans account for a significant part of their annual revenue. 

Vehicle Repairs 

Transportation is undoubtedly a critical good and will always be in demand despite any economic downturn. Car owners will now opt for lower cost alternatives for when choosing to repair or maintain their vehicle. Additionally, the team at Capital Equipment believes that there will be a steady growth in vehicle repairs as car owners will choose to repair their vehicles as opposed to purchasing a new one as it allows them to delay the need to purchase a new vehicle. 

Used Car Sales 

While COVID may have opened up the market for some great opportunities and deals with prices falling, the Government's new importation policies will now allow the used car market to hold their prices as new alternatives will now cost buyers more. 

Rise of independent mechanics 

With the projected increase in the vehicle servicing and repairs, many mechanics currently employed will now begin to explore opportunities to become independent and start their own operations. Capital Equipment has already began noticing trends with many automotive mechanics across the country are looking to be enjoy great autonomy and have their own business. 

Used Parts 

The used parts business will continue to flourish as many persons look for lower cost alternatives. Instead of going to dealership many people will now explore prices from OEM brands and used parts. However, given the significant price difference between new and OEM and new and used parts, natural behaviour will dictate a strong attraction towards the used parts business.

Joe

The Capital Equipment Guy