Import Crisis: Influx of grey imports in car industry

There is a fear amongst car industry experts that the closure of major car manufactures in Australia will lead to influx of Grey Imports (second-hand cars from overseas) and that it will wreck the second hand car industry in Australia.

Dealers feel that the imports pose a risk to buyers due to the lack of ability to obtain parts from inside Australia as most part suppliers do not stock or carry import parts for cars originally sold overseas and never sold here in Australia.

Even though some makes and models can carry the same name and branding, the actual parts and components used can very a lot.

Consumers are attracted to Grey Imports due to the price, with a grey import being 20% cheaper on average.

Potential Imports are near new Toyotas, Mazdas, Hondas, Nissans (and others) from Japan. Also Jaguars, BMWs, Mercedes-Benzes, Audis, Porsches, Ferraris (and others) from the UK.

Car dealers also feel that this will effect their bottom dollar and create havoc when it comes to trade in prices as customers will feel that the trade-in price on a grey import will be too low in order to allow the dealer to add a profit on top when re-selling the vehicle.

There are also fears of safety as there are reports that Russia was receiving Grey Imports from Japan and cars were containing radio-active fall out from the 2011 Fukushima nuclear meltdown.

At the end of the day, don’t buy a Grey Import unless that is the type of car that you are looking for. Saving a few dollars is not worth the hassle of not being able to source parts or risking your safety on a vehicle you know no history on.

A report from the Commission is handed down in March 31, 2014. Lets hope the Government can see the disaster this scheme will be and stop the imports from flooding our shores.

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