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Tarrif cut: Bonus for new-car buyers?

It could be a happy new year for car buyers — if manufacturers pass on a tariff cut. By GLENN BUTLER.

When the fireworks erupt at midnight on December 31, car buyers could be in for a happy start to the new year.

That's because the tariff on imported cars will drop from 10 per cent to 5 per cent overnight.

Theoretically, that translates to a price cut of about 3 per cent on a new imported car.

But before you break out the champagne, theory doesn't always translate into practice, especially in the car industry.

Manufacturers have been battered by the global financial crisis over the past year, and, while few of them are willing to admit it, most are hoping to pocket the tariff windfall rather than pass it on to the buyer.

So far, Mazda is the only volume-selling importer to bite the bullet and pass on the savings, doing so ahead of time (from last month) in the hope of getting a marketing advantage from being first with the good news.

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