Australian buyers allowed to import new cars from 2018

[Mim]

URL - http://www.drive.com.au/motor-news/a...10-gmq65e.html


Australian motorists will soon be able to save money through bypassing car dealers to source new cars from overseas.


The Federal Government announced on Tuesday that parallel imports of new cars are part of planned changes to the Motor Vehicle Act that will go to parliament this year.
Frustrated by local delays, buyers will soon be able to source their own example of performance cars like Nissan's GT-R Nismo. Photo: Drive

The move is likely to benefit a small fraction of Australia's 1.1 million new car buyers, with wealthy luxury car owners and niche enthusiasts set to benefit most from the changes that allow consumers to source new or second-hand cars and motorcycles from foreign markets as long as they meet strict requirements.


Cars must be right-hand-drive, less than 12 months old and have less than 500 kilometers on the odometer. Vehicles must initially be sourced from Japan or the United Kingdom, though other right-hand-drive markets such as New Zealand, South Africa and India may be considered in the future.


The changes will take place from 2018 if approved by the Parliament and Senate.
Enthusiasts will soon have more access to Japan-only models such as the Subaru WRX STI S207.

Minister for Major Projects Paul Fletcher says motorists will benefit from the deal.


"These new arrangements however will offer consumers greater choice," he says.


"If a manufacturer chooses not to sell a particular model in Australia, a consumer may now have an option to source this model overseas."

That opens the door for enthusiasts to buy special models such as Subaru's more potent WRX STI S207 and Nissan's flagship GT-R Nismo.
Other models only available overseas include hybrid and electric cars considered too niche by Australian importers. Popular cars such as the Toyota Corolla or Subaru Outback are unlikely to prove cheaper if personally imported from Japan or the UK once shipping costs and taxes are factored in.


But there is an opportunity for drivers of high-end prestige cars to save money. Porsche's new 911 is priced from ¥13,091,000 ($161,000) and £76,412 ($156,000) in Japan and the UK, while Australian pricing starts from $217,800.


Similarly, the Mercedes-AMG GT sports car is £97,200 ($199,000) drive-away in the UK and closer to $315,000 on the road in Australia. While there are often differences in specifications between countries, some top-end luxury models give potential customers plenty of wiggle room to pay for import costs on a car sourced overseas.


Those who do will miss out on warranties and other consumer protections.
Though the new vehicle parallel imports system works in theory, it may be difficult to implement in practice. Most car companies do not deal directly with the public, and they place restrictions on dealers preventing them from selling cars to customers in foreign markets.


Porsche Australia has slammed the federal government's new parallel import plan as short-sighted, claiming the measure will expose the market to unsafe vehicles and insufficient consumer rights.


Porsche Australia spokesman Paul Ellis said the government would be better off scrapping the controversial Luxury Car Tax if it was serious about importing cheaper vehicles to the country.


"This move goes against everything Malcolm Turnbull has done since he came to power," he said. "There's been a lack of consultation, a lack of working together and a lack of harmony. There are political motives in this decision, it's not a good decision and if the government was fair dinkum about making cars cheaper, they'd get rid of the Luxury Car Tax
"Overnight you'd take $45,000 off the price of the [$252,800] Carrera S. The government makes more money out of every Porsche Carrera S sold than what we do as the importer and what the dealers do as the retailer combined."


Ellis called for an urgent re-think of the government's proposal, claiming the move is unlikely to expose consumers to pitfalls.


"If someone chooses to import a vehicle from another market, they won't get any warranty from Porsche Australia. We only support warranty on vehicles we officially import, distribute and retail in Australia," he said.
"If a manufacturer has a recall and a safety campaign on a motorcar, and you cannot identify a privately imported motor vehicle, that car isn't covered.


"The consumer is at serious risk, both with recalls and especially with safety. The current structure is there for a reason, it's there to protect the consumer and the product."


Ellis said the parallel import plan could also affect used car values in Australia. Porsche enthusiasts are likely to be among those hit hardest by the measure. Currently, Porsche 911 residual values are among the highest of the sports enthusiast market.


"There are all sorts of ramifications," he said. "Even things like the air-conditioning - the vehicle's brought into Australia by Porsche are designed with our hot climate in mind. The government is saying buyer beware - I'm not sure the buyer is going to be that aware."


The government has not applied the parallel imports scheme to second-hand cars, siding with the car industry's security and safety concerns.
But it will be easier for enthusiasts to import classic and enthusiast vehicles from 2018, when local manufacturing of cars has concluded. A $12,000 tax on imported used cars will be abolished, as will the need to fix physical compliance plates to low-volume cars such as Nissan's Cube and Skyline GT-R.


Michael Bradley, chief executive of the Australian Automobile Association, says the parallel imports deal is "a big win for consumers and a decision that will open up choice, help put downward pressure on prices, and increase competition within the Australian car market".


"The AAA welcomes these changes and urges all sides of politics to agree to the legislative changes required to make them a reality," he says.
Car companies are represented locally by the Federal Chamber of Automotive Industries, which is "extremely disappointed" in the government's decision.


"In its announcement today, the Government failed to acknowledge that Australians who personally import a vehicle made for another country may end up with a vehicle that does not meet their needs or operate as required in Australian driving conditions," FCAI chief Tony Weber says.


"If the Government is so concerned about car affordability, it should look at the taxes and other government charges that make up around 20 per cent of the price of new cars in Australia. Fixing those tax arrangements, including the poorly-designed Luxury Car Tax, is a better and more targeted way of addressing car affordability than a change that will only ultimately hurt consumers."
- with Sam Charlwood

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My thoughts jumped immediately to the BRZ ts in Japan and to the inevitable small volume specials they generally only do for the JDM market.


Obviously lack of warranty would be a sticking point though.


I've never really read of what its like to import cars into the US though. Are there any special way's to get cars from another market into the US? I've read of the grumbling over spec or lack there of especially initially when the FRS came out, but didn't hear of any mention of importing from another market.

[Nessal]

The luxury tax is nothing but a money grab by the government anyways. As if someone that could afford a 200k car would really be disuaded by another 40k.

[why?]

As an individual you cannot import new cars, or pretty much any car 25 years old or less without footing the bill to make them US compliant, meaning crash testing and everything. It is totally absurd but all about auto manufacturers paying off politicians.

Originally Posted by Nessal

The luxury tax is nothing but a money grab by the government anyways. As if someone that could afford a 200k car would really be disuaded by another 40k.

you're joking right? That's a 20% tax, and is absurd. The prices quoted are all totally absurd, and the government is trying to do something to fix that.

[Mim]

Originally Posted by why?

As an individual you cannot import new cars, or pretty much any car 25 years old or less without footing the bill to make them US compliant, meaning crash testing and everything. It is totally absurd but all about auto manufacturers paying off politicians.

you're joking right? That's a 20% tax, and is absurd. The prices quoted are all totally absurd, and the government is trying to do something to fix that.

LCT in Australia is beyond absurd as no other luxury goods have one ie no similar tax on boats, planes etc...

Its currently 33% after a value of $63,184AUD for all cars bar fuel efficient ones where the threshold starts at $75,375AUD. To help put this into perspective Nissan GTR's are 172k, Tesla S P85D's are 191k and a Rolls-Royce Phantom Drophead 1.1mil AUD.

URL - https://www.ato.gov.au/Rates/Luxury-...nd-thresholds/

[Wise]

Originally Posted by Nessal

The luxury tax is nothing but a money grab by the government anyways. As if someone that could afford a 200k car would really be disuaded by another 40k.

It's good that they're dropping these taxes and tariffs. They were brought in to protect our locally produced GM, Ford. Toyota and Mitsubishi cars.

But since those businesses ran themselves into the ground and are all shutting up shop in the next 12 months, there's not much reason to keep charging.

The stealerships will kick up a fuss over it, but luckily the car dealership industry isn't quite as powerful in Australia as it is in the US with their special interests lobby.

At the end of the day the consumers should have the final vote. They'll decide with their wallets not their ballots.

[Wise]

I wonder if this would allow us to import the Alfa 4C in it's Euro spec.

Without the extra 130kg of safety stuff.

[Nessal]

Originally Posted by why?

As an individual you cannot import new cars, or pretty much any car 25 years old or less without footing the bill to make them US compliant, meaning crash testing and everything. It is totally absurd but all about auto manufacturers paying off politicians.



you're joking right? That's a 20% tax, and is absurd. The prices quoted are all totally absurd, and the government is trying to do something to fix that.

And the point of your response was? My post still stands. Please show me where I said the tax is not absurd.

[Nessal]

Originally Posted by Wise

It's good that they're dropping these taxes and tariffs. They were brought in to protect our locally produced GM, Ford. Toyota and Mitsubishi cars.

But since those businesses ran themselves into the ground and are all shutting up shop in the next 12 months, there's not much reason to keep charging.

The stealerships will kick up a fuss over it, but luckily the car dealership industry isn't quite as powerful in Australia as it is in the US with their special interests lobby.

At the end of the day the consumers should have the final vote. They'll decide with their wallets not their ballots.

I never said that it wasn't a good thing. I'm simply stating that people who can afford those cars are not dissuaded from buying them because of a luxury tax. The luxury tax is nothing but a money grab by the government to make more revenue. The only thing it does is prevent access to these cars by middle class to upper middle.

[Wise]

Originally Posted by Nessal

I never said that it wasn't a good thing. I'm simply stating that people who can afford those cars are not dissuaded from buying them because of a luxury tax. The luxury tax is nothing but a money grab by the government to make more revenue. The only thing it does is prevent access to these cars by middle class to upper middle.

Agree with you 100%. Was just expanding upon what you said.