Cruisers Forum
 


 
 
Thread Tools Search this Thread Rate Thread Display Modes
Old 12-09-2016, 09:54   #1
Registered User
 
zboss's Avatar

Join Date: Sep 2011
Location: On a boat
Boat: 1987 Cabo Rico 38 #117 (sold) & 2008 Manta 42 #124
Posts: 4,172
South African cats at exchange rate

Can one buy South African made catamarans for dirt cheap if exchanging from USD to Rand? I assume that you would fly over and conduct your business in SA currency.


Follow us on tikitreksailing.com
zboss is offline  
Old 12-09-2016, 15:05   #2
Registered User

Join Date: Mar 2015
Posts: 114
Re: South African cats at exchange rate

Quote:
Originally Posted by zboss View Post
Can one buy South African made catamarans for dirt cheap if exchanging from USD to Rand? I assume that you would fly over and conduct your business in SA currency.


Follow us on tikitreksailing.com
The Rand hasn't depreciated significantly vs the dollar recently, in fact it's at about the same place it was this time last year (XE.com - USD/ZAR Chart). That's the only way you'd get a deal, if they built and priced based on a higher Rand that unexpectedly devalued and they haven't adjusted their prices in Rand yet. The absolute exchange rate is really irrelevant, especially since most/all the inputs for the cat like the engines, fiberglass, paint... are commodities that cost roughly the same everywhere in USD terms, perhaps even more expensive when you have to transport them to SA. Labor is the one area that they'd have a comparative advantage in SA, however you price your product based on competitors pricing; cost plus materials is just your minimum price, so the French cats are probably setting the pricing there. Converting to Rand to do your purchase does nothing, there's no reason they would price significantly less in Rand than in the same amount of Rand converted to USD. There are no currency controls and the Rand is freely traded, so no free lunch by you doing the Rand conversion for them. Hopefully one would assume they're smart enough to be able to convert currency if you're trusting your life to their boat!
14murs14 is offline  
Old 12-09-2016, 16:33   #3
Registered User

Join Date: Aug 2009
Location: between the devil and the deep blue sea
Boat: a sailing boat
Posts: 20,420
Re: South African cats at exchange rate

If you locked the deal back in 2015 and paid up early 2016 then yes, you may have a deal. But otherwise I do not know what you mean.

Any RSA builder will buy the components outside and so the prices will adjust in the mid term period.

XE.com - USD/ZAR Chart

If you think the roller coaster will repeat, you simply short ZAR / long USD then reverse at the top or replicate the strategy with CCY options. This buys you the advantage which you can later use to buy ANY boat/thing.

b.
barnakiel is offline  
Old 14-09-2016, 00:11   #4
Registered User

Join Date: Apr 2009
Location: LA
Boat: Farrier F9ax, Edel 35
Posts: 104
Images: 1
Re: South African cats at exchange rate

actually, I was able to find some used cats about a year on SA local sites at a fraction of NA prices...it wasn't easy digging up the websites but they are there...have not looked recently...
windhorze is offline  
Old 14-09-2016, 07:26   #5
Registered User

Join Date: Aug 2009
Location: between the devil and the deep blue sea
Boat: a sailing boat
Posts: 20,420
Re: South African cats at exchange rate

Links, links, links ...

You find a good deal, you do not take it. Why not post it so that others can explore?

b.
barnakiel is offline  
Old 14-09-2016, 13:12   #6
Registered User

Join Date: Apr 2009
Location: LA
Boat: Farrier F9ax, Edel 35
Posts: 104
Images: 1
Re: South African cats at exchange rate

like I said I was surfing around last year...but lucky for you I am a multihull shopoholic

here's an example...$50k less than comp in caribbean...

Boat_for_Sale_45_Royal_Cape_Catamaran

there were 3 wildcats at very attractive prices...but I can't seem to find them now...

cheers
windhorze is offline  
Old 14-09-2016, 13:41   #7
Registered User
 
UNCIVILIZED's Avatar

Join Date: Jun 2014
Location: Up the mast, looking for clean wind.
Boat: Currently Shopping, & Heavily in LUST!
Posts: 5,629
Re: South African cats at exchange rate

Finding them's been problematic. Though like anything, you might just get lucky. And you know what they say about luck
__________________

The Uncommon Thing, The Hard Thing, The Important Thing (in Life): Making Promises to Yourself, And Keeping Them.
UNCIVILIZED is offline  
Old 14-09-2016, 14:15   #8
Registered User

Join Date: Mar 2007
Location: Santa Cruz
Boat: SAnta Cruz 27
Posts: 6,711
Re: South African cats at exchange rate

Look for a used boat in SA which was bought new in 2011. The rand was over twice what it is today, and the seller may just look at how many rand he paid for it then vs what it sells for today. Of course, the seller paid VAT on his boat, which may not be due on exported boats.
donradcliffe is offline  
Old 14-09-2016, 14:59   #9
Registered User

Join Date: Mar 2015
Posts: 114
Re: South African cats at exchange rate

I think there's a fundamental misunderstanding of how exchange rates impact prices coming from people living in stable currency countries. If your currency devalued by half since 2011, you know it. Everything you buy costs twice as much as it did then. You're not so naive as to think that a 2011 Rand is the same as a 2016 one, and you're not going to sell based on you purchase price in raw numbers just like someone there isn't going to sell their house for half price based on what they paid for it.
It's cheap to buy a used cat in SA right now. It's also cheap to buy one in the Seychelles. That's because they're both a long way from the big markets, fewer buyers are going to pay to fly out and look at them and they're all pricing in the cost to get the boat to where they are in the U.S. or Europe. This all has nothing to do with the exchange rate of the Rand!
14murs14 is offline  
Old 14-09-2016, 18:40   #10
Registered User

Join Date: Aug 2009
Location: between the devil and the deep blue sea
Boat: a sailing boat
Posts: 20,420
Re: South African cats at exchange rate

Quote:
Originally Posted by windhorze View Post
like I said I was surfing around last year...but lucky for you I am a multihull shopoholic

here's an example...$50k less than comp in caribbean...

(...)

cheers
Yes. Very nice discount.

And is cruising the Caribbean not worth the extra 50k ???

Soberly though: CCY rates fluctuate, at times, WAY faster than brokers/owners update their websites ... beware.

I have see this with a boat where asking was 1.5 mio (on a website) and that went for 7ook just recently.

Cheers,
b.
barnakiel is offline  
Old 15-09-2016, 09:46   #11
Registered User

Join Date: Mar 2007
Location: Santa Cruz
Boat: SAnta Cruz 27
Posts: 6,711
Re: South African cats at exchange rate

Quote:
Originally Posted by 14murs14 View Post
I think there's a fundamental misunderstanding of how exchange rates impact prices coming from people living in stable currency countries. If your currency devalued by half since 2011, you know it. Everything you buy costs twice as much as it did then. You're not so naive as to think that a 2011 Rand is the same as a 2016 one, and you're not going to sell based on you purchase price in raw numbers just like someone there isn't going to sell their house for half price based on what they paid for it.
It's cheap to buy a used cat in SA right now. It's also cheap to buy one in the Seychelles. That's because they're both a long way from the big markets, fewer buyers are going to pay to fly out and look at them and they're all pricing in the cost to get the boat to where they are in the U.S. or Europe. This all has nothing to do with the exchange rate of the Rand!
Its thinking like yours that let me retire before 50.
donradcliffe is offline  
Old 22-09-2016, 23:14   #12
Registered User

Join Date: Apr 2009
Location: LA
Boat: Farrier F9ax, Edel 35
Posts: 104
Images: 1
Re: South African cats at exchange rate

Quote:
Originally Posted by 14murs14 View Post
I think there's a fundamental misunderstanding of how exchange rates impact prices coming from people living in stable currency countries. If your currency devalued by half since 2011, you know it. Everything you buy costs twice as much as it did then. You're not so naive as to think that a 2011 Rand is the same as a 2016 one, and you're not going to sell based on you purchase price in raw numbers just like someone there isn't going to sell their house for half price based on what they paid for it.
It's cheap to buy a used cat in SA right now. It's also cheap to buy one in the Seychelles. That's because they're both a long way from the big markets, fewer buyers are going to pay to fly out and look at them and they're all pricing in the cost to get the boat to where they are in the U.S. or Europe. This all has nothing to do with the exchange rate of the Rand!
I'm no economist nor have I ever been really good with my money...but the truth I think lies somewhere in the middle...I had a Canadian interested in buying my US boat...as the Canadian $$$ crashed, my boat became less realistic for him to buy...I'm not adjusting my asking price based on Canadian/Australian/SA exchange rates...

But when I noticed the strength of the dollar compared to these currencies it made shopping interesting...if I only had the time to capitalize on it I could have probably made out ok...
windhorze is offline  
 

Tags
Africa, African Cats, South Africa

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
South African vs European Cruising Cats Bartholomews Multihull Sailboats 2 01-05-2016 03:20
South African Cats ALIAS Multihull Sailboats 6 31-12-2014 07:41
South African Cats Are the Best Blue Water Boats! Sand crab Multihull Sailboats 22 14-04-2014 15:54
Any experience with African Cats Agility Multihull Sailboats 30 27-11-2007 03:00

Advertise Here


All times are GMT -7. The time now is 16:25.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.