GST & used car prices

Q.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.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. The thing is that used car prices are depressed at the moment. But if dealers & private sellers base there prices on current prices and factor in a drop later then the drop will be rather large. Basically its a toss of a coin about used cars. I don't think you can predict these kinds of things and you cant use other countries as examples due to certain factors the government has added.

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