Low AUD set to spark an increase in new Machinery prices
- By: "Farm Tender" News
- Sheep & Wool News
- Mar 20, 2020
- 680 views
- Share
By Gareth Webb - CEO O’Connors
The Covid-19 virus is presenting the world with significant challenges. At O’Connors we are working through these and no doubt you are doing the same. We are striving to think strategically and focus on facts, and in line with this, we are acutely aware of the current devaluation of the Australian Dollar.
The Covid-19 virus is presenting the world with significant challenges. At O’Connors we are working through these and no doubt you are doing the same. We are striving to think strategically and focus on facts, and in line with this, we are acutely aware of the current devaluation of the Australian Dollar.
A large number of products we offer are US-sourced, including Case IH Patriots, Axial-Flow Combines, Magnums and Steigers. Pricing on these products is set by Case IH and is vulnerable to shifting currency markets. As a Case IH dealer we feel there is a significant risk of price rises. We cannot predict when these will be, but we expect them to be swift. Given the dollar has dropped over 20% since the beginning of the year, we also expect them to be large.
For this reason, we strongly recommend customers review their purchasing plans. If you are considering an upgrade or addition within the next two years we advise you to act on those plans, urgently.
The only way to lock in current pricing and avoid dramatic increases is to place a retail order. Only customers can secure forward-order pricing, Case IH dealers are unable to order floor stock for future sales at current prices.
Many of you may also be in a position to take advantage of recently announced tax incentives, included advanced depreciation and increases to the instant asset write-off threshold. These are the best incentives we’ve seen since 2009 and recommend you discuss your situation with your accountant.
In conclusion, we cannot stress enough the need to act quickly. The current Case IH forward order period was due to expire at the end of this month, but we feel changes could be announced at any time, with very little notice. If you’re in a position to act, please contact your local sales team urgently.
Share Ag News Via