The Productivity Commission’s (PC) report into Australia’s Automotive Manufacturing Industry recommends relaxing controls on so-called “grey” imports of second-hand cars, noting that Australian consumers are being fleeced, particularly when it comes to purchasing higher-end vehicles:
It might be the case that some ‘premium’ vehicle segments (such as luxury European made motor vehicles) are characterised by larger profit margins and are relatively less competitive compared to overseas pricing because of the existence of fewer close substitutes. An increased supply of close substitutes in the form of late model second hand imported premium vehicles could, in this segment, place downward pressure on prices for new vehicles…
