Dubai: Back floods ravaged Texas in May 2015, estimates advance stormwaters broke as abounding as 10,000 vehicles.
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Within weeks, media appear that one Texas bear firm’s car lot, alone, was abounding in the after-effects with 2,500 cartage listed as absolute blow write-offs by allowance companies.
The arduous numbers of bear cars prompted the National Allowance Crime Bureau in the US to footfall in to log and almanac the cars to anticipate their resale by arrant dealers and individuals both in and out of the US. “The above affair we accept is that we absolutely do not appetite to see total-loss abounding cartage re-entering the beck of business at some point bottomward the road,” Fred Lohmann, a Crime Bureau director, told the Houston Chronicle bi-weekly at the time.
Some used-car dealers in Dubai abhorrence that aloof such total-loss cars are actuality alien into Dubai frequently as allotment of what they affirmation is a trend of bear cars actuality alien from US and Canada bargain houses and alien into the Middle East.
Once alien into Dubai, the cars are again repaired and resold as complete cars in their aboriginal action to biting buyers, according to accepted car exhibit owners in Dubai.
Several dealers who batten to Gulf News on the action of anonymity, said added regulations are bare in Dubai to analyze and block bear cars purchased from North American auto auctions.
“Accident cars are a big problem. We charge addition to analysis acceptation cars,” said one exhibit buyer in Al Aweer borough acclimated car parking complex. “This is authoritative a botheration for our market.”
He said bear cars are calamity some UAE markets and estimated that 80-90 per cent of acclimated cars alien from North America are cars accounted as salvage.
The estimates could not be absolute by Gulf News.
“Many, I’d say, 80 to 90 per cent of cars, are salvaged, the bazaar is full,” said a banker buyer in an interview. “They don’t affliction if the car is damaged. If there is a storm advancing [in United States, for example], how abounding cars end up in the water. Too much. So, they accelerate them actuality or in the Gulf or in India. Too abundant cars.”
The end aftereffect is that afterwards a bear car is awash in the UAE, the new buyer generally ends up adverse ample adjustment bills back the agent break down.
“Other bodies are affairs and not adage that [informing them of bear designation].” One month, two months, three months, they will use the car and the agent is damaged,” he said.
One Dubai citizen told Gulf News that he bought a late-model acclimated Toyota car but back he approved to canyon it through inspection, the car bootless to canyon because the anatomy was anchored and was acutely an blow car.
The man said “I got rid of it, I absent bags of dirhams.”
He warned added abeyant used-car buyers to accomplish abiding they analysis the agent allotment cardinal afore they carapace out their hard-earned cash.
Used car dealers appropriate that added regulations are bare to actualize a firewall at the UAE bound to accumulate bear cars from the acclimated car bazaar to assure able car sellers as able-bodied as consumers.
The big problem, said the car dealer, is that abounding bear cars advancing from North America do not accept accompanying paperwork that declares the car as a bear and adumbral dealers in the UAE alone charge a “green paper” to accompany the car into the country.
For example, one US online car bargain website declared that the close had added than 140,000 cars for bargain in its account — including 8,000 cars that were damaged — and of the total, alone 133,862 had what are alleged a “condition report”.
Online auctions, including one in Toronto, acutely account cartage that are classified as “salvage insurance” and are formed on the folio with a brand that states them as “non-drivable”.
Those aforementioned warnings do not consistently accompany the car back it is alien into the UAE, said honest used-car dealers.
“We charge somebody to accessible the car and analysis it there at Dubai Community and again booty it into UAE,” the banker said. “That’s it. Maybe the RTA could accessible an analysis abode at Community to analysis cars.”
If a car is articular as salvage, dealers said the car should alone be awash for additional genitalia in the UAE.
Until the flood of accident-damaged cars is stopped, bodies will abide to buy bear cars because they are far beneath big-ticket than cars on honest, ethical car lots, said one dealer.
“While one accident-free acclimated car archetypal can bulk Dh200,000, addition aforementioned archetypal can advertise [salvaged and repaired] for Dh80,000,” the banker said.
Dubai Community told Gulf News that the Agent Analysis Numbers (VIN) of all cars entering the UAE are arrested to ensure they are not baseborn or listed by Interpol.
In an account with Gulf News, Mohammad Al Muaini, administrator of Land Community Centres Management at Dubai Customs, said his bureau does not “issue decisions prohibiting or akin access of any kind.”
“With attention to cartage that are declared or labelled by allowance companies as actuality undrivable, such allocation is the sole albatross of allowance companies in the countries of export.
“A agent is declared undrivable in accordance with the rules and regulations in force in the country of export. However, this does not beggarly that the aforementioned such rules will be activated or are applicative in the country of import. Neither does it abatement beneath the adequacy of Community administrations to appeal any certificates issued by allowance companies on the action of alien vehicles,” Al Muaini said.
He acicular out that “as far as cartage approval procedures are concerned, Dubai Community inspects alien cartage aegis wise, afterward the acquiescence of corresponding Community acknowledgment and appropriate documents, and again checks the vehicle’s absolute blueprint adjoin the acknowledgment and accompanying documents. The VIN (chassis number) is absolute to accomplish abiding that the agent is not baseborn and is not accountable to an Interpol Notice. Afterwards accomplishing so, a agent approval affidavit (VCC) is issued advertence that the car has been austere by Customs. This doesn’t beggarly that the agent is drivable or is accurate for licensing or allotment aural the UAE.”
Al Muaini said the albatross for chargeless whether a car is drivable is up to UAE authorities who baby-sit agent registration.
“As for chargeless whether the agent is in a drivable action or not, it is accustomed that such accommodation avalanche aural the ascendancy of cartage licensing and allotment authorities in the country, and not of the community departments operating in the UAE. Therefore, the cartage that don’t accommodated the certified abstruse blueprint and altitude activated by the competent authorities shall be awash as additional parts, or contrarily re-exported alfresco the UAE, appropriately it is not accustomed to accept such cartage registered aural the UAE beneath such affidavit to be issued by the competent authorities,” Al Muaini said.
Ahmad Hashem Behroozian, CEO, Licensing Agency, Roads and Carriage Authority, told Gulf News that the RTA does not actuate which cartage can be imported, it alone inspects them afterwards they are in the country.
“It is not beneath RTA’s administration to ban any blazon of cartage from entering the country as this is taken affliction of by the Customs. Cartage are registered by the RTA afterwards they canyon the assigned agent analysis test, Behroozian said.
“The Community accept to analyze such cartage by appearance the Agent Approval Affidavit (VCC) with a account advertence the agent is a salvaged vehicle.”
If a ambiguous auto does accomplish it into the country and has ample repairs, it will be bent by accomplished RTA inspectors, he said.
“Yes, our testing centres do not canyon cartage with signs of above aliment to the anatomy or to the anatomy which will affect the vehicle’s alley ability and access risks,” Behroozian said.
“It is not aural our ambit to stop any agent from entering the country for resale as every agent for bargain or resale has to canyon the appropriate blueprint assigned by RTA and as such cartage that do not bout the appropriate blueprint cannot be registered.”
Dubai Statistics Centre showed that Jebel Ali Port handled 505,562 cartage in 2014 classified as non-container appurtenances and 480,100 cartage in the aforementioned class for the year before.
A breakdown of new, acclimated and bear cars is not listed in the statistics.
The Dubai Economic Department accepted to Gulf News that it has not recorded a distinct complaint by a customer of actuality bilked into affairs a base bear car.
It’s accessible to find, buy and address total-loss cartage from online auctions in US and Canada at acutely low prices and accept them alien to the UAE.
One US car bargain that sells salvaged cars disqualified as a absolute blow by insurers said on its website: “We additionally alike across carriage for bags of cartage to over 170 altered countries. Complete bazaar advantage and aggregate discounts acquiesce us to canyon cogent accumulation to you and bear cartage as bound as possible.”
According to a abstracted Canada-based online car auction, the website acutely offers cars classified as “salvage insurance” with a big red brand beside their listings labelling the car as “nondrivable.”
Bidders, for example, can abode their bids starting at $1 (Dh3.67) for a 2,000 Mercedes Benz S430 or a 2003 Nissan Altima — both are allowance write-offs.
Terry O’Keefe, administrator of Communications, Media Relations and Education for the Ontario Motor Agent Industry Council (Omvic), told Gulf News that his government-sponsored bureau is alive adamantine to action what are alleged “curbsiders”, those who buy bear cars, accomplish a baby bulk of corrective work, and again advertise the damaged agent to biting buyers in Canada and abroad.
“Curbsiders are illegal, actionable dealers. Aloof as curbsiders frequently adulterate themselves — generally assuming as clandestine sellers — they frequently adulterate the cartage they sell; abounding are accident-damaged, rebuilt write-offs or odometer-tampered,” he said.
O’Keefe said his organisation does “not accept the advice to animadversion as to the likelihood of curb-siding in the Middle East. We do apperceive from acquaintance with added jurisdictions in Canada and the US that the botheration is accustomed throughout North America”.
In Ontario, O’Keefe said the bargain of salvaged cars was done through clandestine ads by curbsiders assuming they are artlessly affairs their own claimed cars when, in fact, they accept purchased a total-loss car, repaired it, and are artifice consumers.
O’Keefe said “our analysis has apparent that in Ontario, 28 per cent of all ‘private’ agent classified ads on a accepted online exchange were acceptable placed by curbsiders — this in a arena accepted for its advancing anti-curbsider initiatives. The aforementioned analysis showed 60 per cent of the clandestine ads placed in British Columbia and 55 per cent of those placed in Quebec acceptable belonged to curbsiders”.
Ask the agent for the Agent Allotment Cardinal (VIN) and run it through www.nicb.org/theft_and_fraud_awareness/vincheck, a US-based online database advised to stop salvaged cars from actuality resold.
The National Allowance Crime Bureau (NICB) in the US offers the chargeless account to users.
Vehicle not registered to agent or alone registered to agent for abbreviate period
Vehicle priced beneath bazaar value
Doesn’t accommodate agent history report
Refuses analysis by purchaser’s mechanic
Vehicle generally not argent and/or uninsured; accordingly test-drive is not possible
Refuses to accommodate cancellation or affidavit of purchase
Source: Omvic, NICB
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