removal of restrictions on used car import will drive competition
TRANSCRIPT
Removal of Restrictions on
Used Car Import Will Drive
Competition
Pickles Auction
Address: 36-40 Harp St, Belmore,
NSW 2192
E-mail: [email protected]
Phone: (02) 9704 6666
One change in second hand car import policy and cars in Australia will be cheaper.
The Harper Review released a research in April that endorsed the removal of restrictions on
parallel imports of used cars. In 2014, the Productivity Commission’s Review recommended
the same action.
Greater competition, cheaper prices
Without the control of multinational
companies on the selling and buying of cars,
Australian consumers can purchase vehicles
from independent and private dealers. The
market would be swamped with new and
second hand cars, thus stimulating
competition and resulting in cheaper prices.
The government implemented the regulation
on second hand car imports to safeguard
public safety and local industry. But since the
local production of vehicle and engine will
have ended by 2017, including big brands like
Toyota and Ford, more and more people
believe the time has come to lift the
restrictions.
“Complicated and outdated”
restrictions
Many have described second hand car
import policies as complicated and
updated. With Toyota and Ford pulling off
local manufacturing, more and more
consumers have viewed the regulation
with scepticism.
Naturally, specialist car importers have
reacted to the Harper Review’s
recommendation positively. They claim
relaxing on import regulations would
benefit Australian consumers. With cheaper
cars, coupled with new safety regulations,
both the government and people can really
use the economic boost.
“Australia would not become a
dumping ground for used cars”
Reacting to the Productivity
Commission’s Review in 2014, the
government said the country would not
be a dumping ground for used cars.
People against imports say that removal
of restrictions would reduce vehicle
quality and safety standards, leaving
second hand car users vulnerable to
“unsafe” driving, less owner protection
and more crime.
Other concerns lie in the “added difficulty in maintenance, warranties and potential
recalls that could arise from independent imports,” says Tony Webber, chief executive of
the Federal Chamber of Automotive Industries.
At the moment, the government has shown no indication of lifting the restrictions and all
Australians can do is wait.
RESOURCES:
http://www.pickles.com.au/cars
http://www.news.com.au/technology/innovation/harper-review-calls-for-removal-of-
parallel-import-restrictions-on-motor-vehicles/story-fnjwucvh-1227289613575
http://www.themorningbulletin.com.au/news/australia-could-open-door-overseas-used-
cars/2594661/