Australia: Car prices could fall if Productivity Commission’s recommendation adopted

Posted by Leslie B on 24 March 2014 | Comments

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The Productivity Commission’s proposal to open the door to cheap second-hand car imports is a subject of debate. If approved it could make cars in Australia thousands of dollars cheaper. However, there are a few drawbacks to this proposition. The Australian car industry is upside down since the validation of the Productivity Commission’s proposal to allow the “dumping” of thousands of used cars in Australia. They fear this decision could wipe “hundreds of millions of dollars” from the value of most popular vehicles.

The Productivity Commission has proposed to relax the rules governing “grey imports” (the name given to imported used cars that were never sold as new in Australia). In the long term, the Commission expects that the removal of unjustified restrictions on large-scale importation of second-hand vehicles would benefit the community as a whole. Consumers would be able to access new cars at a cheaper price. This includes sporty and luxury models that would have cost more overseas.

On the flip side, the car industry fears 300,000 annual new car sales will be lost as a result, forcing dealers to the wall. However, considering Australia’s recent loss of their car manufacturing industry, dealers and car companies could raise prices, as they are the only source of supply.


Moreover, the safety and history of imported cars could be a huge issue according to David McCarthy, the senior communications manager for Mercedes-Benz, “The provenance of the vehicle, its safety and emission standards would all be unknown...” He went on to point out, “There is not an international system that tracks the ownership of vehicles”

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The Productivity Commission wants to import several new cars into Australia. Japanese imports include Toyota, Mazda, Honda; Nissan (and others) Whereas UK imports include Jaguars, BMWs, Mercedes-Benzes, Audis, Porsches and Ferraris (and others). welcome UK car imports to Australia. The Mercedes Benz, senior communications manager will be happy to know that we offer HPI checks on all cars with a number plate. Therefore their safety, emissions and ownership among other factors, are all checked prior to departure. Not to mention, by importing your vehicle from the UK you could save against high costs of the same vehicle bought from car companies and dealers in Australia. With fewer restrictions in place, you can import any number of exotic vehicles into Australia, making you the talk of the town.




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