Improving ... the national road toll fell to an 89-year low last year, due in part to the increase in newer and safer cars. Source: Supplied
The Federal Government's controversial plan to relax the rules on imported cars could leave owners unwittingly out of pocket with a stolen vehicle or stuck without a warranty.
Cabinet is due to meet today and is expected to discuss the changes which would allow buyers to privately import new and used vehicles.
In addition to concerns that Australia would become a "dumping ground" for used cars, private importers of new cars could be left without basic consumer protection, and have no way of being notified of a recall for their car, prompting safety concerns.
The Chery J11 ... senior industry figures are concerned the government has adopted a "buyer beware" attitude to the risks involved in privately importing cars. Source: News Corp Australia
The industry has grave concerns over the protection of consumers who might unknowingly import stolen cars, illegally repaired vehicles, or cars that don't meet Australian safety standards.
The Federal Government proposed the changes last year — after Australia's three remaining car manufacturers announced they would shut their local factories by the end of 2017 — in the mistaken belief it would lead to cheaper cars.
But data from Commsec shows car affordability is at a 37-year high and prices are at 20-year lows.
Australia is already the most competitive new-car market in the developed world with more than 65 brands competing for 1.1 million annual sales, compared to 38 brands in the US competing for more than 15.5 million sales.
Big sales ... Australia is already the most competitive new-car market in the developed world. Source: Supplied
"The industry is scratching its head trying to figure out what problem the government is trying to solve," said Patrick Tessier, the CEO of the Australian Automotive Dealers Association, which represents 4000 members.
"This is a ludicrous proposition and it has been done without any thought given to the jobs of people in the motor trade."
Approximately 68,000 people are employed at new-car dealerships nationally, about twice as many as the number employed in car manufacturing.
The industry says relaxed rules on imported cars would expose buyers to overseas scams.
"The Government has a responsibility to ensure there is competition, but it also has a responsibility to protect the consumer," said Richard Dudley, the CEO of the Australian Motor Industry Federation.
Concerns ... there are fears relaxed rules on imported cars would expose buyers to overseas scams. Source: Supplied
Senior industry figures are concerned that the government has adopted a "buyer beware" attitude to the risks involved in privately importing cars.
"Australian authorities have made great progress stamping out stolen rebirthed cars (cars with new bogus identity); trying to properly identify an imported used car will be next to impossible if the floodgates open," said Mr Tessier.
"The Federal Government has looked to New Zealand as an example of this policy, but the age of cars there has actually increased since the import rules were relaxed, so there are now more less safe cars on the road there."
The Australian road toll fell to an 89-year low last year, due in part to the increase in newer and safer cars.
"No-one in government has thought this through," said Mr Tessier. "All it will take is one fatal crash in one of these dodgy privately imported cars and we will be asking ourselves why this happened in the first place."
News Corp Australia contacted the office of Jamie Briggs, the assistant minister for Infrastructure, who is overseeing the proposed changes, with the car industry's concerns. But Mr Briggs' office was unable to comment as this article was prepared.
This reporter is on Twitter: @JoshuaDowling
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