Expert: Drew Wilmoth - 9/28/2009

Question
My son will soon be relocating to the Cayman Islands.  What is the best way of finding a good second hand car there?

Answer
I delayed answering due to some ongoing decisions being made by the Cayman Government.

There is a thriving exchange of used cars in Cayman. There are a few dealers, but the large majority of used vehicles sales are private transactions from one person to another. With a constant stream of new arrivals and departing persons, word of mouth is the most effective way to find a used car. Often ownership and maintenance records can be traced back through two or more owners.

Many people have also arranged the import of used vehicles. There are several companies which specialize in the international sale of used cars, particularly cars from Japan. There are several websites for such companies which are easily found by an internet search. Most of these vehicles are inspected by a mechanic and generally are newer cars. You should consider the cost of the vehicle, freight, insurance, import duty, and associated environmental fees when considering importing. Until recently, this was the most effective way to get a mid-price quality vehicle at a reasonable cost.

This week the Cayman Islands government announced various fee increases to help balance the budget. There was a significant increase of the environmental fee charged upon the importation of a vehicle. The environmental fee is to pay for the cost of disposing of a vehicle once its useful life has been expended. The new environmental fee is now CI$1000 (US$1250 or Bds$2500) which is on top of the 27% import duty.

You should expect that this fee change will make cars already on the island worth that much more. It will likely result in poorer quality vehicles staying on the road longer as well.