If you've been holding your breath hoping for a drastic price drop on that shiny new SUV of your dreams then you better take a deep breath now as the Dominican Association of Auto Dealers (Anadive) says that reductions on new vehicles will be minimal and used vehicles imported from the U.S. will not drop with the implementation of the DR-CAFTA trade agreement.

While the association realizes there has been false expectations in regard to lower prices for vehicles imported from the United States, it states that the agreement only applies to vehicles originating in the U.S. with a Certificate of Origin showing that greater than 35% of its components are manufactured in the U.S. and having an engine larger than 1500cc. These vehicles will gradually be reduced by 25% increments over the next 3 years until reaching zero. They also note that with other tax burdens, such as the 16% ITBIS and 17% licence plate fee, the DR-CAFTA reduction only comes to 2% of the automobile's end cost.

The agreement does not extend to used cars as they cannot show a Certificate of Origin or guarantee that components or parts were not replaced by non-U.S. origin parts. Anadive would like the agreement to be extended to used vehicles in order for consumers to benefit from possible price breaks.