Used Import Car market to open up

Car prices could tumble as government considers industry upheaval

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Vehicle import regulations could be streamlined
Australian design rules could be sidelined
Car prices may drop by 25 per cent
Used vehicle values tipped to crash
New and used cars could become significantly cheaper under a range of proposals put forward by a government white paper regarding Australian Standards.
A study prepared by the Department of Infrastructure says the price of a new Mercedes-Benz could drop by up to $25,000 if buyers were allowed to source cars directly from manufacturers, and import near-new models from countries that meet Australian regulations.

Luxury cars such as the Mercedes-Benz C-CLass could become much cheaper under proposed changes to the car industry.
The report also recommends that Australian Design Rules are relaxed, as making vehicles comply with local rules costs an average of $229 per vehicle, while vehicles imported under the registered automotive workshop scheme cost an average of $1988 to convert to Australian regulations.
It also canvasses the possibility of bypassing car dealers by allowing customers to purchase cars online and have them delivered to their doorstep. It’s a model that Subaru and Mercedes-Benz have toyed with in Australia, and one that Tesla has employed successfully in North America.
The paper says the Abbott Government would need to consider the proposal’s potential effect on safety, emissions and consumer protection.
Assistant Minister for Infrastructure, Jamie Briggs, says the discussion paper is only the first step to reviewing legislation that may have passed its use-by date.
“No decision has been taken by the Australian Government to reduce these restrictions and we have no intention to allow Australia to become the dumping ground for other countries’ second-hand lemons,”
“Any potential changes to the Act will be comprehensively examined in close consultation with stakeholders, and I strongly encourage interested parties to put forward their views.”
The Government is open to consultation until October 13. It has taken on board some recent recommendations put forward by the productivity commission.

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