As the effects of the global financial crisis continue to impact Australian industry and as the dollar continues to fall against the US dollar, the price of imports increases substantially making the purchase of new heavy equipment less viable. As a result, the attractiveness of locally sourced used equipment increases.
As the Australian economy slows, construction and mining contracts diminish which results in a surplus of used heavy equipment. “IronPlanet has seen an increase in stock available for auction in the last month, which is flowing through into upcoming auctions. Our December 11 auction is shaping up to be the largest we have had in Australia since our first online auction in February,” says Graeme McPherson, Managing Director of IronPlanet Australia. “The market has quickly swung from a seller’s market to a buyer’s market in a matter of weeks,” says McPherson.
IronPlanet has recently seen an increase of interest in Australian located used equipment from international markets. In IronPlanet’s recent online auction held on November 13, seven aerial work platforms were purchased by numerous buyers in Singapore. “This is a real benefit of the falling Australian dollar”, says McPherson. “It makes exports from Australia very competitive in the international market”. This is further supported by the 93 visitor countries who viewed the November 13 auction.
Opportunities also exist for Australian buyers purchasing used equipment within Australia. The increase in the volume of equipment due to the economic uncertainty has resulted in motivated sellers who are looking to turn their assets into cash. As a result, astute and savvy buyers were able to purchase quality equipment at great prices in the November auction. This included a 2001 Caterpillar 303 CR Mini Excavator sold for $24,000. This item was protected by IronPlanet’s IronClad Assurance which guarantees online buyers that the equipment they are bidding on is exactly as the detailed inspection report outlines.
A key aspect to IronPlanet’s global success has been it’s independent inspection reports. Most items auctioned by IronPlanet are sold with a detailed report which guarantees the condition of the equipment.
IronPlanet (www.ironplanet.com.au) the world’s leading online auction company for used heavy equipment will hold it’s final Australian auction for 2008 on Thrusday, December 11. The auction will feature equipment in 20 categories including excavators, articulated dump trucks and welders.