Second-hand gear a plane good deal

29 Oct, 2010 04:53 AM
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WA MACHINERY dealers are offering Eastern States farmers deals of the decade, to buy good quality used combine harvesters and tractors.

In one instance, farmers are being given a free airfare to fly to WA to inspect and test drive machinery.

The scenario has been triggered by a surplus of trade inventory in WA following last year’s sale bonanza when the Federal Government provided substantial tax allowances on new equipment.

Unfortunately for WA dealers, a poor season has meant the WA market has flattened out at a time when dealers normally would be selling trades.

One of WA’s biggest dealers, Waltons, is offering the “free airfare” incentive.

According to the company’s general manager Mark Hattingh, any farmer that commits to buying equipment worth more than $75,000, will be flown to WA to inspect the machinery with an opportunity to test drive.

“Conditions apply but basically it’s an incentive that already is attracting inquiry,” he said. “We’ve regularly sold trades to the Eastern States and our latest offer is part of our marketing strategy.

“The Federal Government’s tax allowance scheme has caused the problem and we lobbied hard for the scheme to include used equipment.

“Now the WA market is overloaded with second hand equipment that has not shifted because we’re having a poor season.

“It has become a very tough market and we’re looking at every marketing option to provide farmers with a fair deal and ourselves with a fair return.”

Another major WA dealer McIntosh and Son, which has branches in Queensland, is offering freight incentives to Eastern States farmers.

“We’ve already sold headers but we still have a good selection of low hour late models,” the company’s general manager Stuart McIntosh said. “We are ready to do business and there are good opportunities here to fill your requirements.”

According to Boekeman Machinery group dealer principal Stuart Boekeman, his managers were advertising in most main Rural Press newspapers.

“We’ve selling in all States and we’re getting a pretty good response from our advertising,” he said. “We’re offering freight incentives and a delivered price,” he said.

“I have no doubt Eastern States farmers know they are making significant savings buying good used gear in WA.”

Farm Machinery Dealers Association of WA executive officer John Henchy said many FMDA members were looking to Eastern States markets to sell used equipment.

“It has been a very tight market because of the poor season and dealers have been caught by consequences of the Federal Government’s 2009 tax allowance on new equipment,” he said.

“It has meant trades have been sitting in dealers’ yards as WA farmers watched the season deteriorate by the month.

“In a normal season, such used inventory levels of good quality machinery would have been manageable but this year has been a very difficult trading year for dealers.”

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