Engine kit - buy now or wait?

[rgmwa]

Our Aussie dollar is at record highs against the US at the moment, so now would be the best time for me to buy the engine kit. The snag is I won't need it for another around 12 months or so, so it will be sitting in a crate in the workshop.

The downside of waiting is the likelihood that the exchange rate will drop again, and the kit could easily cost $4,000 - $5,000 more of our dollars in 12 months time.

What's the risk of the engine deteriorating while it's sitting in its crate for a year in a dry workshop.

 

[ErichKeane]

Nothing will happen to the engine if it sits, unless you keep it somewhere too humid or overly cold. The Rotax comes recently run and will oil in it, so you'd be fine letting it sit.

In our case, the engine sat about 9 months before the first time without issue.

 

[RV7Guy]

Good time

If you think you can save several thousand now, I'd say go for it. If you are in a dry environment, it should be fine. Consult with the kit manufacturer. They will have a method for you to protect the parts. Light oil possibly.

The risk in waiting is that the exchange could hurt you as well!!!

 

[Ausmo]

Take care

Very tempting, very strong $AU. You might want to check this, but I heard that the Rotax warranty clock starts ticking at purchase.........if so that would be a downside.

Cheers

Erik

 

[rgmwa]

Very tempting, very strong $AU. You might want to check this, but I heard that the Rotax warranty clock starts ticking at purchase.........if so that would be a downside.

Cheers

Erik

Good point Erik, although there is a service letter on the Rotax website dated March 30, 2009 that states that "the warranty comes into effect from the date the product is first put into use".

I don't know how they know what the date of first use is, unless maybe they ask to see the engine log book. Perhaps somebody can comment on this.

Anyway it's tempting to buy now with our dollar at $1.05US. This time next year it could be down to 62 cents again like it was in late 2008. Decisions, decisions

 

[crashley]

you could pay for it now and have vans deliver it when you need it or get a cheque from the bank in usd and hang on to it till you want the engine
and also if you register the engine with rotax your warranty doesnt start until the first start

 

[rgmwa]

you could pay for it now and have vans deliver it when you need it or get a cheque from the bank in usd and hang on to it till you want the engine
and also if you register the engine with rotax your warranty doesnt start until the first start

Thanks Ashley. I guess there are ways to have your cake and eat it too. Sorry if this is a dumb question, but how does Rotax know when the first engine start is?

 

[DonFromTX]

I have been told that you call them when you make the first start.

 

[rgmwa]

I have been told that you call them when you make the first start.

Hmm... is that right? Maybe I'll wait a while. How long does that warranty last? Heh, heh

 

[foka4]

Treasury bills

By some US t-bills to lock in on the value of the favorable exchange rate, and then buy the engine when you're ready for it.

M

 

[WingedFrog]

By some US t-bills to lock in on the value of the favorable exchange rate, and then buy the engine when you're ready for it.

M

This will work great... unless congress refuses to raise the debt limit
Answer in just a few months

 

[Peterk]

Thanks Ashley. I guess there are ways to have your cake and eat it too. Sorry if this is a dumb question, but how does Rotax know when the first engine start is?

No you don't call them. You put it in your engine log book. If you have an incident (as I did) they will ask for copies of your logbook. The warranty is very short anyway so it pays you to put it through many hours quickly.

 

[rgmwa]

No you don't call them. You put it in your engine log book. If you have an incident (as I did) they will ask for copies of your logbook. The warranty is very short anyway so it pays you to put it through many hours quickly.

Thanks Pete. That makes sense.

 

[DonFromTX]

I stand corrected, this is a quote from Van's a few minutes ago:
"Warranty begins when you receive the engine and goes for 18 months or 200 hrs- whichever comes first."
In view of that I think I will wait until the last minute to order the engine. Kinda sucks, since NOBODY starts using the engine until some months after they receive it in this type configuration.

 

[denmit]

Forward Exchange Contracts

Robert, have a look at Forward Exchange Contracts (FEC) offered by the bigger of our banks and by Ozforex. You can lock in a rate today for up to 12 months out. It costs you an amount based on the difference in interest rates between the two countries applied over the period of the hedge. With the US interest rates at all time lows it might not make financial sense but it may be worth investigating. I am.

 

[rgmwa]

Robert, have a look at Forward Exchange Contracts (FEC) offered by the bigger of our banks and by Ozforex. You can lock in a rate today for up to 12 months out. It costs you an amount based on the difference in interest rates between the two countries applied over the period of the hedge. With the US interest rates at all time lows it might not make financial sense but it may be worth investigating. I am.

Ah, the joys of the long-distance builder! Life would be so much simpler if we didn't have to deal with foreign exchange rates. You guys in the US have it easy. Thanks Dennis.

 

[DonFromTX]

It appears to only work one way. Even though we can buy lots more Euros than we could a year or two ago, the price of the Rotax has gone up! Go figure that one, someone is making a sweet profit now.

 

[splitty]

Rotax Engine

Ah, the joys of the long-distance builder! Life would be so much simpler if we didn't have to deal with foreign exchange rates. You guys in the US have it easy. Thanks Dennis.

Hi Robert maybe a call to Bert Flood our Aussie Rotax dealer may be able to fill you in on the Warrenty Clauses? I realise your not buying from him Direct but he is their Aussie rep so to speak.! Would be interesting as I will be building later this year with luck!