The Ministry of Transport, Communications and Works has requested rental vehicles from the Cyprus Association of Rental Car Owners to alleviate the problem of vehicle immobilisations, as its President, Konstantinos Kontos, told CNA, noting that the Association intends to respond today to the Minister with a letter, in which it will express its intention to provide rental vehicles at reduced prices to those who immobilise their vehicles due to a recall, but also requesting, at the same time, that the state assume part of the cost.
As Mr. Kontos told CNA, the Minister and the director of the TOM requested the Association's assistance to "contribute to providing vehicles to people who have chosen to immobilise their vehicles". He noted that the cost of renting a vehicle long-term for a person with a middle or low income is very high and, although the companies that want to help are lowering their prices, "due to the upcoming tourist season and limited availability and increased demand, prices will go up".
He pointed out that "even if we offer a discounted price, the cost will be high in the long run for someone to bear. We will send the Ministry today a proposal for a reduced price, but we suggest that this cost would be better borne by the state, because it would be unfair for rental companies to be forced to run after every citizen who is struggling, suffering, and even collect. I hope the state will come as a helper and say that it will bear a part of this cost."
Impact of recalls on the rental car industry
-----
According to Mr. Kontos, companies of various sizes are active in the sector, from small ones with 10 vehicles to large ones with 3.000-4.000 vehicles. As he explained, the larger the company, the smaller the likelihood that its vehicles will be limited by any problematic airbags, resulting in their immobilisation, as for the most part large companies purchase new vehicles with European approval.
On the contrary, some of the smaller companies, which usually bought used vehicles, are more likely to be affected and "some do have a problem that will limit their vehicles."
Asked if there is an estimate for the number of rental vehicles included in the recall list, he said there is no update yet. "There are small companies that are losing 8 out of 10 vehicles or the majority of their vehicles and there are large companies that have 2.000 vehicles and have no recalls."
Asked how customers who rent vehicles can know if the vehicle they are going to get is not on a recall list or if the airbag has been replaced, Mr. Kontos said that each business can answer every question from its renter if the vehicle they are driving is under recall. "We cannot give an announcement for every vehicle. We will answer every question. I believe that everyone is responsible for not giving away a vehicle under recall. In addition to the law, it is also a matter of ethics," he said.
When asked if the Association has given instructions to its members to stop the circulation of vehicles on the recall lists, he said that "we have not given instructions to our members due to the diversity of companies", noting that the situation is different in large and small companies, and also "the dust has not settled" from the instructions announced by the Minister or by the TOM. We are waiting for a few days to pass to see what the outcome of the instructions will be so that we can guide accordingly".
He added that most companies "I believe are serious, meaning that when they receive a letter from the dealership of the vehicle they have purchased for a recall, they respond and take their vehicles to be repaired. I believe it is inelegant and unethical for someone to ignore such a letter."
Furthermore, Mr. Kontos said that due to the heavy workload that this process will place on the workshops, they will not be able to cope with their normal operations. He estimated that this will lead to the immobilization of other company vehicles, which will need maintenance or repair for another reason and will not be able to find an available workshop. “This is our biggest concern,” he said, citing the pandemic period as an example, when hospitals could not serve other cases.
"I estimate that many vehicles will be delayed in being repaired, they will be out of service until availability appears at the repair shops," he said.
"Torture" for MOT-transfer certificates
-----
In addition to the immobilisation of a number of rental vehicles, Mr Kontos expressed the Association's concerns over a number of issues related to the relevant legislation that was recently passed on the subject. As he said, "the legislation that was written was without much attention to detail by MPs who were not very aware of what was happening in road transport and as a result has many malfunctions, which we explained to MPs, both we and the TOM, which need to be corrected."
As he explained, a non-recall certificate must be presented when performing each MOT. “The goal of the MPs was, as they said, to close the information cycle, without realizing that this creates a huge dysfunction and huge cost for the companies that have to do MOTs.” Mr. Kontos clarified that the law states that this certificate is required for all vehicles, not just those that are under a recall order.
"We reacted and told them that you are victimizing all the vehicles in the world with this burden, which is a huge inconvenience, and dealers rightfully have costs and are asking for costs. A company that has 1.000 vehicles, if the dealer wants 160 euros for each certificate, this company will have an additional cost of €160.000 per year to do an MOT, in addition to the cost of the MOT," he noted.
He added that "the MPs did not realize what they were doing and did not take steps to correct it in the legislation. This problem is not mentioned in the Minister's decrees. The result is that either the law will have to be corrected or the TOM, as its director recently told me, will issue instructions to alleviate this problem."
CNA contacted the Director of the Department of Motor Vehicles, George Loukas, regarding this issue, who explained that the instructions given for MOTs are that vehicles be inspected either upon presentation of a relevant certificate, or through the department's computer systems, in which the data from the recall lists have been registered, so that vehicles that are not subject to a recall do not need the relevant certificate.
The second problem that Mr. Kontos highlighted that arises from the legislation is the provision that says that this non-revocation certificate will be necessary when a vehicle is transferred. “Leasing companies transfer too many vehicles every day. It means that we will have extra costs and it is unfair because too many of our vehicles are not problematic. They were bought new, with European approval and so on,” he said.
According to a relevant circular from the Ministry of Motor Vehicles, as of February 11, 2025, no registration or transfer of vehicles in categories M, N and O will take place without the presentation of a certificate or declaration stating that there are no pending recalls for the vehicles in question.
Source: KYPE
