With the Euro nearly at parity I am surprised that UK car retailers are not targetting the left hand drive market just across the channel.
i.e. reverse of what we had a couple of years ago!
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I agree. In Spain the C5 Tourer auto 2.2d would cost me about ?31,000. In the UK, the equivalent is about 22,000 Pounds. Mind you, the exchange rate is very unstable. It's at ?1.3 today, recently ?1.06 to the Pound. I would be charged 14.75% registration fee and then there's the paperwork, special MOT etc. and possible after-sales service problems. It would have to be a very big saving to make it worthwhile. You'd think the UK dealers would at least be having a go though.
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It's ?1.13 today, not ?1.30.
I gather on some makes (I've seen Porsche specifically mentioned) they are doing this. But the dealers probably want to keep quiet about it for fear of upsetting their principals.
Edited by Bill Payer on 16/04/2009 at 14:50
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It's ?1.13 today not ?1.30.
Thanks for correcting me...typing error.
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i wouldnt call it the strength of the euro
more the weakness of the euro as it really needs revaluing but france and germany wont allow it
lets see what country falls out of bed first
time will tell
hang on boys
motoring link
well anyones whos been to the continent lately knows that those speed cameras are sure well hidden
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Was there yesterday and the excellent new Carminat Tom Tom (a £450 extra in the new Grand Scenic) picked out every camera. Warned of the prevailing speed limit, too.
Yes the 40% fall in Sterling against the Euro and 50% fall against the Yen over the last two years is such a big problem that Euro manufacturers will supply the more profitable EU markets first.
If the car scrappage scheme comes in and everyone wants a C1/107/Aygo, etc., they won't be able to get them at today's UK prices.
If a manufacturer can get a ?7,500 ex-factory price in Europe, why should he sell it in the UK at a ?5,000 ex-factory price?
If someone then orders the car through Motability Finance, the European or Far Eastern manufacturer is actually being asked to sell the car at a loss in the UK, and no manufacturer can afford to do that for long unless taxpayers prop him up.
HJ
Edited by Honestjohn on 17/04/2009 at 08:16
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If someone then orders the car through Motability Finance, the European or Far Eastern manufacturer is actually being asked to sell the car at a loss in the UK, and no manufacturer can afford to do that for long unless taxpayers prop him up
Perhaps true as far as it goes, but I think the overall context is more important. Firstly, the current exchange rates are just that - current. The trend already (as BB implies) are moving towards a weaker Euro (and Euroland). The Yen (and associated or linked regional far eastern currencies) can't export enough to drive(!) their economies & may well be forced to induce/allow a depreciation of thier currencies. If they don't do it voluntarily, the markets seeing their deteriorating trading position, will do it for them.
The quantitive easing intitiated in GB by GB is being adopted more & more widely - we did it first because the crisis was primarily one of banking/credit initially - not 'making things'. We now see those countries who make things suffering the 2nd wave of the credit crunch: the buying crunch.
The UK is relatively well placed. The cars we do make (and export: 70%) are now extremely competitively priced & will gain more (relative) sales abroad. The EU recently lowered base lending rate to 100 BP, they are considering monetary expansion (or QE) by other means: this is lowering their exchange rate - just what they need.
I'm not painting a rosy picture here or imagining all is hunky dory - I think the west in general is seeing a nett loss of wealth/power/influence (now & in the future) to the east. However, witihn the constraints of that, the UK is the most flexible of the globalised economies & its ability to 'suffer' & adapt is a strength. The more monolithic economies of the east & the politico/socio trading blocks ( like the EU) may appear solid, but the full unwinding of this cathartic economic period is yet to fully find expression in those economies.
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Very well put, woodbines.
My French friends and neighbours have been making smug remarks about the UK economy for months now but I still believe they don't know what's going to hit them.
Thank goodness throwing tantrums by blocking Channel ports and kidnapping the boss when he tells you you're costing him too much is just not British...
My friend has just bought a new Laguna (on my recommendation but only because when he asked my opinion I decided it was the car I disliked least!) and cars and houses are still changing hands here but, methinks, only because you can have a two-year bridging loan practically free in France and a lot of people are keeping their fingers crossed...
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HJ, I thought that speed trap warners were banned in France and if used would be confiscated.
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I thought speed trap detectors (radar and laser) were illegal in France. Using a GPS system to locate speed cameras is something different. And that is what the TomTom unit is doing using points of interest - no different to warning you that you are near a particular chain of restaurants.
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good post hj
Edited by bell boy on 17/04/2009 at 21:16
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