The price tag on a new $34,000 Volkswagen Golf can be $30,000 while a Mercedes ML350 could possibly be $85,000 in contrast to $101,000, under Abbott authorities propositions to let drivers acquire brand new cars directly from another country.
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The government states customers will win from being able to purchase cars from abroad, particularly at the high end spectrum of the market, but car dealers reported the plan might damage safety and lose jobs.
“We are not preaching about a pair of jeans here, or even a phone,” claimed Mercedes-Benz’s David McCarthy.
Mr McCarthy reported the superior spectrum of the car market (cars worth in excess of $150,000) was set to benefit most out of the government pitch. “It’s a minute section of the car market that gains, and the most worrisome situation here is that he says it is a event of buyer beware,” he said.
Assistant Infrastructure Minister Jamie Briggs claimed shoppers will win from the plan, due to commence as soon as next year.
“We enable men and women to obtain all kinds of other goods overseas via the internet. There seems no reason why we should not enable men and women to purchase new cars from offshore markets where there’s an opportunity for them to do so,” he explained.
Deutsche Bank recently claimed that Australia the world’s most high-priced country, and one variable which contributed to the headline was the cost of new cars. The bank’s groundwork claims a brand new Volkswagen Golf costs $34,000 in Sydney and Melbourne as opposed to $23,000 in Tokyo.
In Australia, a typical BMW 3 series 328i costs $64,000 when compared to $55,000 in the UK, whereas a Mercedes-Benz ML350 BlueTec Diesel will cost you $101,000 here and $85,000 in Japan.
The deregulation plan will face scrutiny from a variety of senators, such as independent senator Nick Xenophon and Labor’s Kim Carr.
“Motor vehicle requirements exist for a purpose and so they should never sacrifice safety or security that customers rightly anticipate,” Mr Carr warned The Australian Financial Review.
Mr Carr added raising the importing regulations might threaten jobs for car dealerships and component companies.
GM Holden’s Sean Poppitt expressed so-called “grey imports” present “significant risks to buyers regarding safeguarding warranty agreements and car safety”.
Principal dealer David Tompkin said he was concerned about the impact the deregulation may have on his Toyota Ryde business that sells 1200 used and new cars a year.
But he stated he expected the majority of consumers to purchase vehicles by means of their local vehicle dealerships. “I still feel men and women will like to touch and feel the car,” he explained.
Mr Briggs has eliminated deregulating the used car market due to safety worries.
Consumer group Choice claimed the program should have covered used vehicles.