The import-backing Australian Imported Motor Vehicle Industry Association say the government has not done enough for the market with its decision to not allow imported used vehicles, and restricting parallel imports to personal purchases.
“While the idea of private parallel imports initially seems attractive, it is in fact impracticable for a number of reasons,” the association notes in its statement. “Firstly, franchised dealers in most jurisdictions are prevented by their franchise agreements from selling for export.
“Secondly, consumers who purchase direct from overseas would not enjoy the protection of Australian consumer law, e.g. warranties.”
The association also claims the government has missed the opportunity to develop new industry and jobs by saying not to an expanded market for used import vehicles.
“The creation and expansion of a used vehicle importation industry would create opportunity not only for consumers, but Australian entrepreneurs; mitigating the loss of employment and other damages caused by the withdrawal of the vehicle manufacturing companies. For instance, personnel made redundant by the loss of manufacturing could find opportunities requiring a skill set similar to their own within a blossoming vehicle compliance industry.”
“A scheme restricted to new cars, however, ignores the greater population of Australians who are not new car buyers. AIMVIA would contend that only a very small segment of motorists are new car buyers.
“For every new car sold in Australia there are five used car transactions each year, and when rental car, government and business fleet vehicles are excluded from new car sales figures, it reveals that the majority of Australians are not new car buyers.”
“The scheme that Jamie Briggs has proposed ignores the advice of the Productivity Commission and the Harper Review of the Competition Policy, and ignores less fortunate Australians who would only buy used vehicles.”
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