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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

Removal of restrictions on used car import will drive competition

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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“Complicated and outdated”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/