Hi all, here is something I don't fully understand. I have recent price
lists for various cats (e.g., Helia 44, Lagoon
450), which include all the add on options. Regardless of what options I add to a hypothetical total price
, and even if I add all options, the total price, once converted from Euros to US$ at the current
rate, is the same and often much less, than the "asking" price for some 1-3 year old boats in the market (same or equivalent boats e.g., L440).
I assume that a key factor is that the USD has increased in value against the Euro pretty dramatically in 2014, which reduces the price of new French boats for US buyers. I assume that owners of used boats trying to sell them list their boats based on the depreciation from what they paid not accounting for the currency fluctuation.
So currency fluctuations play a major, and mostly unpredictable, factor in determining the actual final price of new and used boats (for US buyers buying
European Boats I mean). This makes predicting the depreciation of a new boat almost impossible since a huge % of the selling price is determined by changes in currency rates. For example, if you are lucky and buy when the USD is strong to the Euro and sell when it is weakest, you could sell a few years old boat for close to what you paid for given that new boats will cost a lot lot more than you paid due to the weak USD. However, if you happen to buy when the USD is weak and try to sell when the USD is strong, then your depreciation may be huge since new boats will cost much less than what you paid (which is happening now to those trying to sell their 2-3 year old boats).
Did I miss anything or does this make sense?
and now that I think about it, since it is impossible to predict currency fluctuations all you can do is buy when you are ready to buy and hope that when you want to sell the dollar is not at an all time high