Do We Need Them ?

The Federal government is mulling a proposal to relax the restrictions that apply to importing second hand cars into Australia.  Proponents claim that this will lower the cost of owning a car for the people who can not afford to buy one of the glittering new models in Australian car showrooms.

Perhaps we would be wise to have a look at the New Zealand experience. In 2008 they adopted a similar plan and now their car industry reports that the country has become a "dumping ground for stolen cars from Asia "!    The Japanese Yakuza is never slow to grasp opportunities and organized crime quickly stepped in to clear their stocks of stolen vehicles, but also deliver cars re-built from written off wrecks that clearly deviated from manufacturers standards.

Apart from the clear invitation to the overseas crime fraternity, we would be wise to give consideration to the likely impact on Australian car ownership.   As many people are discovering, the value of a "trade in "has dropped precipitously.  It is almost impossible to get any sort of a quote for an older car or one from the cheaper end of the model range.   Each year the offering price of second hand cars slips lower and in every city we see stacks of used cars sitting by the side of the road with price tags inviting negotiations with buyers to achieve a "private sale ".   If we add a torrent of imported second hand cars to this glut - prices will go even lower.

There is also an element of danger in buying a used car that was originally built to the standard of another country.   Every car manufacturer wishing to sell their new model in Australia needs to supply a sample for the mandatory "crash tests "which determine it's safety rating.  Today it is hard to offer a new car that is not rated "Five Star " when it comes to the safety of occupants and pedestrian victims.  These qualifications are different in other countries and so many foreign used cars may not meet Australian safety standards.

Then there is the "ecology question ".   From an egalitarian point of view it would be nice if even the poorest Australian could afford a personal car, but motor vehicles are high on the sources of pollution increasing the Co2 content of our atmosphere - and we do have a problem with clogged roads and a lack of parking spaces. Isn't opening the door to other nation's excess car problems simply exacerbating the same problem we have in our own country ?

Another factor to be considered is the impact that opening the importation doors may have on our own car industry.  Two manufacturers are quitting Australian production because we no longer favour their product and a trend has developed towards high end foreign brands.  We encourage new car sales because each new model is considered "safer "because of design improvements and newly developed safety features, but anything that further depresses the "trade in "price of present vehicles will depress demand for new cars.  It would accelerate the "ageing "of our car fleets with a consequent thinning of dealer networks and their supporting mechanical servicing components - a significant employer of people in this country.

It is hard to see any great benefit from departing from the status quo !   In every respect,  increasing the number of cheaper used cars tends to increase our car problems rather than deliver a reward !