Demand for longer operating life for rental cars still awaiting decision

Because of the closure of many sectors due to the pandemic, the rental car sector witnessed losses due to the decline in tourism. (File photo: Ameer Khalifeh/Jordan News)
AMMAN — The Jordanian Car Rental Association recently contacted the Land Transport Regulatory Commission (LTRC) regarding its demand to increase the operating life of rented cars from six to eight years, “to protect the sector from collapse,” but no final decision has been taken yet. اضافة اعلان

“All we want is to survive,” the head of the Jordanian Car Rental Association, Saleh Jallouq, told Jordan News, adding that the operational life of rental cars was 12 years before the COVID-19 pandemic, but was reduced to six years at the beginning of 2020.

At the time, the LTRC added a year, bringing the operational life to seven years. Today, the association members are asking for the operational life to be raise to eight years, as the sector witnessed no real recovery in 2021.

Jallouq said that in 2021, many 2014 and 2015 model cars had to be taken out of service, although they had not been in use that year due to the effects of the COVID-19 pandemic on the tourism sector in particular. This year, the association members do not want this to be the case for the 2016 cars.

Because of the closure of many sectors due to the pandemic, the rental car sector witnessed losses due to the cessation of tourism and the need for employers to keep employees even though they could not pay their salaries, so many resorted to selling cars and resorting to high-interest loans, often incurring debts, Jallouq said.

Jallouq said 13,000 rental cars were operating before the pandemic, and that the sector was in the process of purchasing others, but now, fewer than 9,000 are operational, and the number could become much lower if the 2016 cars will stop working this year.

The head of the association said he had talked to the LTRC in October last year to submit his demands for raising the operational life of rental cars so that the sector could recover, adding that the commission looked into the issue, but no actual measures were announced.

Jallouq said that the sector also suffers because of the high-interest rates asked by banks and financial insurance companies and stressed the need to take care of this investment sector because of its significant direct role in encouraging foreign tourism and developing Jordan in several respects.

LTRC Spokesperson Abla Weshah told Jordan News said that the commission is still studying the demands, and no decision has been taken yet, but one is expected.

Read more National news