Car rental firms say unable to buy newer vehicles

car rental
(Photo: Envato Elements)
AMMAN — Despite a recovery in tourism activity in Jordan, car rental offices complain they are unable to modernize their vehicles to meet the requirements of foreign renters.اضافة اعلان

“Our infrastructure is capable of meeting the needs of tourists, in addition to a qualified and trained manpower to deal with incoming groups,” said Naeem Dawood, a tour operator since 2007.

“But the car rental sector is declining, and has not recovered from the consequences of the COVID-19 pandemic, which greatly affected it,” he told Jordan News.

Mohammad Najeeb, head of the Jordanian Car Rental Association, told Jordan News that the fleet of tourist cars “must be modernized, but the sector is suffering and can barely cope with the economic hardships”.

He said that owners of car rental shops need government support. “Operators in this sector receive little support, if compared with peers in other countries,” he said.

“Operators abroad are provided with tax, customs, and other exemptions, while in Jordan we cannot even extend the operating age of the vehicle, which is six year”, he pointed out.

“In view of the prevailing economic conditions, it is impossible for car rental firms to consider buying new vehicles to replace the old ones they have,” he added.

An immediate solution, he proposed, is to “increase the operational life of the vehicles, in addition to the need to reconsider the civil liability law”.

“There are fabricated accidents for which the car rental company bears responsibility, but before 2004 it was on the responsibility of the insurance company, and this constitutes an additional burden on us,” he noted.

Waleed Saadeh, the owner of a car rental firm, told Jordan News that “we cannot buy new vehicles because the workflow is weak, and the expenses are high.”

He said challenges include high customs, “which is 300 percent the estimated price of the vehicle”.

“We thought about renewing the cars we have, but we couldn’t because it will only lead to more losses, especially since we have not fully recovered from the fallout of the pandemic,” he added.

“The business activity is usually good in the summer only,” he said.

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