You’ll stretch your dollar thanks to a struggling loonie.
Americans are snapping up Canadian deals on everything from cars to wine and used heavy equipment to vacation properties. The weaker Canadian dollar means American bucks go a lot further in Canada for those quick cross-border trips, online purchases or extended holidays to the Rockies. Meanwhile, as The Financial Post reported, Canadians need a bank loan to buy a head of Californian cauliflower. So go the currency markets.
Today, the US dollar rings in at about $1.31 against the Canadian loonie. And that’s not likely to change in the near future, CIBC World Markets stated in a recent currency forecast. Although the loonie’s gained back a few cents against the greenback since January, analysts predict it will likely hover around the 75 to 80 cent mark against the US dollar for some time to come. That difference adds up when you’re looking at, say, a 2012 Cat 730 priced at $170,000 Canadian. For buyers from the US, it will cost you just $135K.
Those automatic savings likely explain why a recent Cat Auction Services unreserved auction held in Edmonton March 30 attracted bidders from 34 US states. John deMiliano works for Finning Canada, the world’s largest Caterpillar dealer, which serves as host for Cat Auction Services live auctions in western Canada.
As used equipment manager, deMilliano says he’s seen the flow of used construction equipment to the US slow slightly in the last while as the Canadian dollar gained some strength. But he adds that US interest in Canadian equipment, particularly machines that are parked in Alberta due to the glut of oil on the world market, helps shore up prices in the down market.
“It’s a moment in time when some customers in our territory are looking to liquidate iron. That, combined with our weaker dollar attracts a lot more interest from buyers around the world.” He adds that when the Canadian dollar was tracking at about 70 cents to the US dollar, just a couple of months ago, “customers south of the border were getting a steal” on Canadian equipment.
At 76 cents, there are still savings to be had, so you owe it to yourself to check out the next Cat Auction Services live, unreserved auction to be held in Edmonton, Alberta on June 22.
Last time around, the Canadian event attracted more than 16,000 attendees, both live and online, up more than 15 percent from the first Cat Auction Services live auction held on Canadian soil last October.
