Will low dollar force motorcycle price rise?

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With the Australian dollar plummeting, will we see motorcycle prices skyrocket?

Currently motorcycle prices in Australia are at an all-time low in real dollar terms as the high dollar value over the past few years has allowed manufacturers to import bikes more cheaply and return some of the savings on to customers.

Our highly competitive market has also forced some importers and dealers to offer other inducements including free on-roads and accessories.

Yet many riders complained bitterly that prices hadn’t come down enough.

Now that the dollar is sliding and bike prices are slightly rising, those same vociferous riders have gone quiet.

But there is no need for alarm.

Prices won’t suddenly explode as the dollar value drops.

Importers “hedge” their orders over several years to even out the currency fluctuations and create a steady price in the market.

It’s good for them and it’s good for the buyers. It creates customer goodwill and brand loyalty while also providing owners with the confidence that second-hand prices of their bikes won’t plummet through the floor.

Although prices are slowly rising, new and used motorcycles have never been cheaper in real terms and, in the next couple of months, you can expect some good bargains as importers and dealers try to clear stock before the end the financial year.

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Meanwhile, the market for grey imports has definitely declined with the falling dollar.

But importing businesses say the effects have been allayed somewhat by a drop in prices for overseas bikes. It’s basically economics at work: the buying power of our dollar slides, so demand declines and then bike prices drop.

2 Comments

  1. I see the federal government is considering allowing the
    import of new cars by individuals to bring real competition
    into the market place.
    No doubt a few motorcycle dealerships are also having a few sleepless nights.

  2. Motorcycles in fact everything never sells for what it is worth
    when the dollar was high.harley prices in america where about 30%
    lower and you can bet small asian bikes were selling one hell
    of a lot cheaper in places like india and the philliphines than
    here.
    If we dropped to 70c to the dollar american they could still
    make around the same as in the states, they charge by what they
    reckon the suckers will pay.
    Personally i never buy new it’s just a waste of money.

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