Parallel imports for second-hand models shelved over safety concerns.

[JG66ME]

There are companies in the UK that already specialise in import and export of cars. Here is one that already has a special service for New Zealand. I am sure such companies will sort Australia out in the future. This company also sorts the VAT and makes sure the car complies with NZ requirements.
http://mycarimport.co.uk/import-proc...uk-new-zealand

[Express]

Australian buyers allowed to import new cars from 2018


Federal government introduces sweeping reforms for motorists.


David McCowen
10 February, 2016



The Mercedes-AMG GT is significantly cheaper overseas. Photo: Supplied


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 kilometres 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."

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

[xtremerus]

Buyers of top end luxury don't own/buy their cars. They won't import.
They are just leased by their Companies for tax purposes.

I can see the benefit for enthusiasts though.

No warranty on a new import would be a worry and you would most likely be reamed by the local OZ dealer for anything if/when something goes wrong.

[Blue Shadow]

Not sure the oz dealer would touch them, they wont warrent any work they do

[sr71]

"As long as I'm here, I'll make available a Loan Car at services" ( a promise from a Salesman, who already had a new job lined 2 weeks later.)
The service desk can be just metres away from the Sales staff/Dealer Principle, but they may as well be in the UK.
My experience is that once the deal is done, the new relationship is with the Service Staff. And they just want to take your $$$. They are happy to do the required services and charge as they do, even if the vehicle came from another Dealership.
Porsche's 'Control Freak' attitude ( as well as other brands), is interesting. Their Service Departments must have had significant growth ( from SUV's) in the last decade. So they should take this opportunity to increase that.
Parallel Importing is likely to help enthusiasts own cars, that could have taken them another decade to work into individual finances. Which is my case.
So I am likely to be a customer of the Servive Department, many years earlier.
The sooks can miss out. And Dealerships who offer their services for Parallel Imports, may end up with extra business.

[Blue Shadow]

Not saying the dealer wont do the service, but the oz manufacture i.e. Mitsubushi Motors Australia for example wont cover any warranty for a car privatly imported from abother country

[csv8]

According to a FB post on the AMCN page a fully imported Harley Road King is $10k cheaper than here .big difference !

[Express]

Parallel imports: the full story



It seems like a win-win solution: liberalise the car industry to provide cheaper vehicles for all.


19 February, 2016
David McCowen and Sam Charlwood



Many Australian cars, such as the Toyota 86, are significantly cheaper locally than abroad. Photo: Supplied


What are parallel imports?

Parallel imports are goods introduced into a country outside its conventional sales network.

In Australia, local importers are currently protected by laws preventing people from sourcing new cars outside official channels, but from 2018 buyers will be allowed to bypass dealers – and local importers – by sourcing cars from overseas. It also means we'll have access to new cars not currently sold in Australia.



Ferrari's 488 GTB is unlikely to prove cheaper if sourced overseas. Photo: Supplied


What sort of cars will be eligible?

The parallel imports scheme is only open to vehicles built in right-hand-drive that are less than 12 months old, with fewer than 500 kilometres on the odometer. The cars can only be sourced from Japan and the UK for now, though other right-hand-drive markets could become eligible in the future.


Does that mean we will get cheaper cars?



Honda's S660 could be available through the parallel imports program. Photo: Supplied


Not necessarily. Few car companies deal directly with the public, which means you will need to pay dealer or broker fees as well being taxed twice for cars bought through the scheme - one lot to Japan or Britain and another in Australia.

The local car market is highly competitive, too, particularly compared with other right-hand-drive markets. Australia's $29,990 Toyota 86 GT costs £22,495 ($45,350) in the UK, while the $27,190 Mazda CX-5 is priced from £23,195 ($46,750) and Ford's $50,900 Focus RS is £29,995 ($60,500) in England, hindering those in search of a bargain.

Japan may prove to be a happier hunting ground, with the ¥3,504,109 ($43,500) Toyota Prado and ¥2,760,000 ($34,200) Honda Odyssey looking cheaper than Australian listings at $52,990 and $37,610 respectively.


But when buyers account for a further 10 per cent in GST, 5 per cent in import duty and thousands more in shipping, insurance and handling fees they will quickly find there are few savings to be had.

It's also important to ensure foreign cars offer the same features as Australian models. Volkswagen Australia's $48,490 Passat TDI R-Line has considerably more equipment than VW UK's £31500 ($63,300) cousin, which would require several thousand dollars in options to add features such as autonomous emergency braking, heated seats and a reversing camera that are standard in Australia.


What about luxury cars?



Porsche says the government collects around $45,000 in in tax from the sale of each 911 Carrera S.


While exotic cars may appear expensive in Australia, a closer look at real-world costs reveals importing cars to Australia can prove prohibitively expensive.

Take Ferrari's new 488 GTB: on sale in Australia for $469,888 plus on-road costs, the Ferrari's £183,974 ($379,900) British price seems comparatively cheap until you factor in taxes and other costs. Add up GST, import duty and luxury car tax that applies to 33 cents in every dollar over the government's $63,184 threshold and the price of the Ferrari quickly races beyond $540,000. Shipping and other fees would represent a further $15,000 in costs, leaving customers up to $100,000 out of pocket.

Nissan's $182,500 GT-R Black Edition retails for a more enticing ¥10,400,000 ($128,000) in Japan, but Australian taxes raise that to $168,500 before shipping and handling costs. That leaves buyers with a car bordering on Australian prices, without a local warranty, inferior resale value and considerably less convenience throughout the buying and ownership process.



NSW police searched several car dealerships this week for evidence of odometer tampering. Photo: AAP


What's the point, then?

Freedom of choice. Major Projects Minister Paul Fletcher says the scheme opens the door to people looking to drive something special.

"Most Australians will continue to purchase vehicles directly imported by manufacturers and sold through their existing dealer networks," he says.



Car industry representatives have warned that there are few protections in place for people who import their own cars. Photo: Virginia Star


"These new arrangements however will offer consumers greater choice. If a manufacturer chooses not to sell a particular model in Australia, a consumer may now have an option to source this model overseas."

Many new cars not sold in Australia such as Honda's S660 roadster and Civic Type-R hatch, Subaru's full-fat WRX STI S207, and the Nissan GT-R Nismo will soon be available to savvy buyers.


Are there risks in privately importing a new vehicle?

While the private import scheme appears to be a straightforward win for consumers on the surface, it will be fraught with risk in terms of consumer protection, ownership costs and road safety, opponents warn.

First things first: vehicles privately imported into the country are likely to be a different specification to factory distributed vehicles. Most luxury cars are fitted with bespoke cooling packages (for engine, transmission and oil cooling), towing packages and entertainment packages to suit Australian conditions. And local vehicles are typically equipped with more safety features than foreign markets.

Unlike vehicles currently sold through official channels in Australia, vehicles purchased through the parallel import scheme won't have the benefit of warranty protection. Instead, buyers will need to purchase a third-party warranty through an insurance company.

While vehicles imported via the scheme are set to go through a mandatory inspection to protect consumers from vehicles that are stolen, re-possessed, written-off or incorrectly repaired, there are no guarantees. The government has already conceded there is an element of 'buyer beware' in purchasing a parallel import; unlike official channels where a vehicle is guaranteed from these risks from new.

Buyers will also need to be vigilant. Unlike current safety recall programs where the manufacturer directly contacts the buyer, the Federal Government says it will develop an alternative online database alerting owners. Beyond this point, the owner will then have to do their own ground work to find a suitable third-party repairer and source the correct parts. Individual parties are limited to one parallel import every two years, so if a vehicle is written off, there could be potentially lengthy waits before you are legally allowed to purchase another parallel import.

On top of these factors, privately imported vehicles could be subject to higher insurance premiums, along with lower residual values.


Will I receive consumer protection?

No. Just as buying goods online inhibits consumer protection, the same goes for parallel imports. The ACCC says that although customers have consumer rights when buying parallel imports, "it may be more difficult to obtain a remedy if something goes wrong with a parallel import".

If the seller is based overseas, the ACCC says "there may be practical and legal difficulties in enforcing your consumer guarantee rights against an overseas business".

There is no obligation for Australian car distributors to help customers if vehicles develop a fault, as all responsibility will be on the seller.


What are the car manufacturers saying?

There has been understandable anguish among car makers in Australia eager to protect their turf. Many don't want the government to muddy the waters of the Australian car fleet with privately imported vehicles. Others concede that the estimated 30,000 vehicles imported under the parallel scheme will have negligible effect on their own profits, but have voiced their opposition because the scheme could compromise road safety.

David McCarthy, senior corporate communications manager for Mercedes-Benz in Australia, describes the government's plan as short-sighted.

McCarthy says "the risk to the consumer is very large" and that the conventional responsibility of car makers is "absolutely intrinsic to the safety and protection of the consumer".

"The minister [Paul Fletcher] calls it choice, I call it bad choice," he says.

"There is a severe lack of detail and understanding on the government's behalf. It doesn't make sense."

Porsche Australia director of public relations, Paul Ellis, says the government would be better off scrapping the controversial luxury car tax if it is serious about making cars more affordable.

"This move goes against everything Malcolm Turnbull has done since he came to power," Ellis says.

"There's been a lack of consultation... 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."

Porsche says the parallel import plan could also affect used car values and that naive buyers may not understand differences between local and global cars.


What about second-hand cars?

Large scale second-hand imports of regular cars are not part of the parallel imports scheme, though it will soon be easier – and cheaper – for enthusiasts to pick up something special.

'Grey imports', a broader term for cars imported outside a manufacturer's official channels, are set to boom in coming years as the government plans to abolish a $12,000 import duty on used cars as well as scrapping limits on the number of vehicles imported by specialist workshops.

Cars must still be specialist or enthusiast vehicles under the scheme, which is restricted to rare, high-performance and niche models.

Buyers of second-hand imports should be careful, as the industry has recently come under fire from NSW Police and the Department of Fair Trading, which raided four used car dealerships in Sydney this week to investigate claims of odometer tampering.

Fair Trading Commissioner Rod Stowe says the businesses may be responsible for about 100 Japanese grey import vehicles with suspect odometer readings.


What about the broader industry?

The aftermarket parts industry has, without great surprise, thrown its weight behind the proposal.

The Australian Automotive Aftermarket Association says the scheme has merit.

"This reform is in line with improving competition and consumer choice. It is also consistent with both the Productivity Commission and Harper Review recommendations for the future direction of the Australian automotive industry and the wider economy," AAAA executive director Stuart Charity says.

"The AAAA made important contributions to these reviews with the aim of enhancing industry competition, while ensuring that public safety and consumer rights are protected."

Charity says car companies may sharpen their prices to combat increased competition.

However, the Federal Chamber of Automotive Industries characterises the proposal as a major back flip.


How else could the government pass on savings to Australian motorists?

Three words: luxury car tax. Opponents to the parallel imports scheme say there would be more advantage in scrapping the controversial tax, which imposes a 33 per cent excise on vehicles that cost more than $63,184 (or $75,375 for efficient cars that consume 7.0L/100 km or less in fuel).

Car industry insiders say the LCT is an anomaly within the taxation system, slugged onto car purchases but not other 'luxury' items such as yachts, jewellery or art.

http://www.drive.com.au/motor-news/p...16-gmvyj4.html

[FalconXV]

I rang a Japanese import place in Sydney about a Mitsupka Viewt. He said they're not able to be imported as it's based on a Micra- an existing model. This doesn't make sense but then again I haven't seen any here.
Does anyone know if this change will allow it in?

[Franco Cozzo]

Does this mean we would be able to import new models currently not sold in Australia, such as the new Honda Civic Type R for example?

[deesun]

When I hear car A is X amount in the UK and Y amount here I ask myself "is it really exactly the same car"? Does it have every inclusion that car A has here, and often the answer is no. I also think when I see an advertised price whether it is at a dealer or private sale that the advertised price is not the price paid so again we are not comparing apples with apples. Then at a later date, though you may have saved 20k on a car by importing privately you will lose a lot of that trying to sell it because no one will want to touch it. As Porsche have said if Govco want to get serious then they should remove the luxury car tax. But of course when was the last time Govco got serious. We no longer have to protect an industry we don't have.