Wednesday, 3 September 2014

Why can't we allow the import of second hand vehicles?

In Driving the status quo Michael Pascoe explains why the restrictions on importing second hand cars needs to go after local vehicle manufacturing stops. I can't understand why, for example, a new Mercedes Benz in Australia is so much more expensive than the same car in the USA. The tariff on imported new vehicles in Australia is only 5% so that's no the reason. However, a bit of competition from relatively young second hand imports from the UK and Japan should increase the competition and force the top end to drop their prices.

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