29/05/2015
Cheaper new cars on the cards
The move towards "deregulation" of the car sales business in Australia is moving forward, albeit at a somewhat disappointingly slow pace.
There seems no doubt consumers will benefit from the opportunity to purchase cars offshore, but the questions remains as to the impact this may have on employment in the local industry. Well established dealers in particular have voiced concerns as tho their viability and staff levels if deregulation proceeded without significant safe guards. An excellent update on the current machinations provides good insight:
By political reporter Jane Norman
Updated 16 Apr 2015, 7:15pm
Luxury cars for sale
PHOTO: It may be about to become easier to import new cars into Australia. (ABC News: Ingo Helbig, file photo)
The Federal Government expects the "vast majority" of Australians will still buy new cars from local dealerships, even if they are given the freedom to import vehicles directly from overseas.
Cabinet has agreed to consider removing the barriers restricting Australian buyers from bringing new cars in from overseas, after another round of public consultation.
The Government said it would give consumers more choice and access to cheaper cars once the local automotive industry closed in 2017.
However, the Government is "not inclined" to take the same approach with imports of second-hand cars.
The minister responsible, Jamie Briggs, has told the ABC the Government wanted to reform the act to ensure Australians could buy the safest and best quality cars at the best possible price.
"The real issue here is: why regulate if you're now part of a global regime?" the Assistant Minister for Infrastructure and Regional Development said.
"We allow people to purchase all sorts of goods from overseas on the internet.
"There seems no reason why we shouldn't allow people to buy new cars from overseas markets if there's an opportunity to do so."
Mr Briggs said if the Government goes ahead with the plan, Australians could buy cars directly from dealers overseas, provided that car complied with global design and safety standards.
"That would obviously be a right-hand-drive vehicle — we're a right-hand-drive country — and it would ensure that you are meeting the same standards you would if you bought the car in Australia," he said.
He said those cars would have to be less than 12 months old, with fewer than 4,000 kilometres on the odometer.
Mr Briggs previously said deregulating the new car market would reduce the price of vehicles, particularly luxury models.
But when asked if there was any guarantee that would happen, Mr Briggs said it would be up to consumers to judge.
"Through the submissions process last year, there were examples the AAA (Australian Automobile Association) presented where there was a price differential in certain segments of the market," he said.
