GST & used car prices

Q.I've seen a few used car adverts lately saying the usual "beat the GST" message, but I could swear that all the price guides and such predict that used car prices will go down, following suit of the drop in tax on new cars. I dunno who to believe and its quite a major difference in price. I am very near to purchasing a car that should be in the $18,000 price range, and I can probably buy before the GST but don't won't to feel rushed to buy before doomsday (July 1). Is there somewhere I can find the facts? Half the used car yards advertise the "beat the GST" crap, others don't make a mention... As far as I know, RACV and such predict used car prices to fall. It's as confusing as hell - could it be that no one knows? I'd like to hear people's thoughts on the impending GST and it's effects on specifically used car prices.

A.Leaving aside the fact that somewhere you need to add stamp duty, etc. to the pre-GST $20K, there is still the fact that the GST does _not_ apply to the full cost of the secondand car - it only applies to the portion which is the dealers 'cost'. Basically this is the difference between what he paid for the car and what he actually sells it for. This may only amount to, say, $200 GST, given a $2000 'profit margin' on the original $20K (or $19K, for that matter). Now there are two market forces here at work, used car prices will rise if sold at dealer so private sellers will think they can get about as much as a dealer lets say. Driving up used car prices. Then at to that, new car prices will drop thus reducing the value of second hand cars. Then add abit of confusion into the market and dealers will be giving lower trade-ins on used cars because 1) the market hasn't settled so they will go the safe option and give you crap all for your trading 2) lower trade-ins cos they gota compete with non-GST private sellers 3) cos they can and you cant do much about it. Now lets put plusses and minuses to the used car price now Used car +(used cars at dealer rise)-(private sellers no GST)+(greedy sellers trying to get dealer prices on private cars)-(drop in tradins)-(lower new car prices) Net effect prices falling.

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