Rental car operators warn of illegal competition, rising costs

ey players in the car rental industry on Friday urged the government to crack down on “illegal” operators and address financial challenges threatening to drive legitimate businesses into closure.

Their call came in response to Prime Minister Mia Mottley’s recent warning to rental car owners about the potential use of their vehicles in criminal activities.

Mottley on Thursday referenced the Proceeds and Instrumentality of Crime Act, which allows authorities to seize property used in the commission of a crime. She announced plans to engage with car rental operators, warning them of the consequences if their vehicles were involved in illegal acts.

“I’ve asked the attorney general and the deputy prime minister to meet with the owners of the hired car industry, because if your car is used as an instrument of crime . . . it can be confiscated and forfeited,” Mottley stated.

But Mohammed Adams, owner of Adams Car Rentals, defended reputable rental car companies, noting that his business performs standard background checks before renting out vehicles. He suggested that illegal operators, particularly those advertising on social media, are the real issue.

“What the prime minister and the commissioner of police need to deal with are the guys advertising on Facebook and renting out private cars. Those persons don’t generally come to an actual car rental company to rent,” Adams told Barbados TODAY. “They are looking for the $80 or $100 cars that are on Facebook, from someone down the road . . . . They might come to the guy that now start up because he [is] renting out his cars cheap because he doesn’t want to be known, so they would be more inclined to go to those fellows.”

Adams also pointed to situations where individuals rent commercial vehicles with ‘C’ number plates, believing they could evade detection. He insisted his business requires valid identification and a driver’s licence before any rental transaction is completed.

Mary Hutchinson, owner of Mary Hutchinson Car Rentals, expressed frustration with the potential impact of new regulations. She argued that it is unfair for law enforcement to seize rental cars involved in crimes.

“It’s not right. If someone [does] something wrong, you think they should hold our car? Hold the person that [did] wrong, don’t hold the vehicle,” Hutchinson said. “People live off hired cars. Everyone is out there scrambling right now and finding it hard.”

Hutchinson, who has operated her business for 65 years, is disillusioned with the rising costs, particularly taxes and insurance.

“I am getting tired and frustrated,” she said. “Most of the tourists are on the bus; they are walking as well. People who used to come and rent a car for two months, now renting for five days. The business is going down but we still have to pay high insurance, high this and high that. I am 80 years old and I would be glad to go home tomorrow,” the veteran businesswoman declared, adding that she does not rent her vehicles to locals.

“It’s up to them [the authorities]. They could do what they like. Whatever they do, they do. Everybody is out there scrambling right now. Insurance gone up, everything gone up. What are we supposed to do?”

Some rental car owners also voiced concerns over Mottley’s announcement regarding the regulation of number plate manufacturing, with fines to be imposed on unauthorised manufacturers.

“The notion that any and everybody can make a number plate, those days are gone,” Mottley had said, adding that while fine amounts were not yet disclosed, they would be “high”.

Adams described the measure as “harsh”, noting that registered manufacturers might increase prices.

He said: “To me, that’s a little harsh because I have a guy that I would send him the road tax list to show him. What I heard her say yesterday she will not allow everybody to make number plates, then those guys who are actually regularised to do it will send up their prices, and some of these guys are over ridiculous with their prices.”

Stefanie Archer, a partner in Alfred’s Number Plates, suggested that anyone wishing to make number plates should be allowed to do so, provided they register their business.

“It should be open to people, but do it the right way,” she said. “They should go out and register and make sure that everything is in place, and do it the right way.”

Mottley emphasised that the government’s approach targets those who facilitate crimes for financial gain.

emmanueljoseph@barbadostoday.bb