$ vs. Euro for purchase of French Cats

[EllisElectric]

Originally Posted by valhalla360

Obviously, you need to know the going rate for a boat and if it is ultimately a good deal. Half off a boat priced 4 times the value, isn't a good deal.

In our case, I had been following the prices and the $56k was pretty close to the going rate. We did negotiate a pretty good deal but even we paid the list price it would have taken the price down to about $40k. (of course that's comparing to the euro peak of around $1.60).

So are you saying that during the euro peak @ $1.60 the list was $56K usd and now because of falling euro the price was $40K?

[valhalla360]

Originally Posted by EllisElectric

So are you saying that during the euro peak @ $1.60 the list was $56K usd and now because of falling euro the price was $40K?

No the list price was in Euro but boats I've seen listed in similar condition have been running $50-60k.

The price in Euro never changed but since I'm sitting on dollars, the exchange rate shift meant I had to convert fewer dollars to get enough euros.

Of course the one we bought wasn't on the market for a few years either.

[EllisElectric]

Originally Posted by valhalla360

No the list price was in Euro but boats I've seen listed in similar condition have been running $50-60k.

The price in Euro never changed but since I'm sitting on dollars, the exchange rate shift meant I had to convert fewer dollars to get enough euros.

Of course the one we bought wasn't on the market for a few years either.

So nowadays if the price is 100,000 euro, would the price be $112,000 usd because the rate now Eur/Usd is 1.12?

[valhalla360]

Originally Posted by EllisElectric

So nowadays if the price is 100,000 euro, would the price be $112,000 usd because the rate now Eur/Usd is 1.12?

Exactly.

And when it was $1.60, the 100,000 euro boat would have been $160,000usd

[sailingabroad]

Originally Posted by valhalla360

Exactly.

And when it was $1.60, the 100,000 euro boat would have been $160,000usd

To put it in context, I have listed below what the USD/EUR has done over the last year and how much a 100,000.00 EUR boat (fixed price) has changed in regards to converting from USD (someone who has savings in USD).

Jan 2014 100K EUR would cost 135,465 USD
Jan 2015 100k EUR would cost 113,097 USD
March 2015 100K EUR would cost 108,225 USD (The High)
25th June 2015 100k EUR would cost 112,057 (Right Now)

It's important to remember these are interbank rates, so your normal bank would add 4-6% onto that price. Therefore best to reach out to a foreign exchange expert to who will get you closer to that interbank rate e.g. 0.5% -1% off depending on how much you are sending.

I hope that makes is easier to understand but this is under the assumption that the price of the European boat has not changed over that time and a majority them haven't.

PM me if you need any further information.

[DotDun]

Originally Posted by sailingabroad

To put it in context, I have listed below what the USD/EUR has done over the last year and how much a 100,000.00 EUR boat (fixed price) has changed in regards to converting from USD (someone who has savings in USD).

Jan 2014 100K EUR would cost 135,465 USD
Jan 2015 100k EUR would cost 113,097 USD
March 2015 100K EUR would cost 108,225 USD (The High)
25th July 2015 100k EUR would cost 112,057 (Right Now)

It's important to remember these are interbank rates, so your normal bank would add 4-6% onto that price. Therefore best to reach out to a foreign exchange expert to who will get you closer to that interbank rate e.g. 0.5% -1% off depending on how much you are sending.

I hope that makes is easier to understand but this is under the assumption that the price of the European boat has not changed over that time and a majority them haven't.

PM me if you need any further information.

Wow! You can predict exchange rates?

[sailingabroad]

Originally Posted by DotDun

Wow! You can predict exchange rates?

Good spotting and it was supposed to be June. I wish I could predict the future haha.

I would be sailing around the world with friends finding new beaches, surf breaks and fishing spots.

Regards,

Ed Wiley

[valhalla360]

Originally Posted by sailingabroad

To put it in context, I have listed below what the USD/EUR has done over the last year and how much a 100,000.00 EUR boat (fixed price) has changed in regards to converting from USD (someone who has savings in USD).

Jan 2014 100K EUR would cost 135,465 USD
Jan 2015 100k EUR would cost 113,097 USD
March 2015 100K EUR would cost 108,225 USD (The High)
25th June 2015 100k EUR would cost 112,057 (Right Now)

It's important to remember these are interbank rates, so your normal bank would add 4-6% onto that price. Therefore best to reach out to a foreign exchange expert to who will get you closer to that interbank rate e.g. 0.5% -1% off depending on how much you are sending.

I hope that makes is easier to understand but this is under the assumption that the price of the European boat has not changed over that time and a majority them haven't.

PM me if you need any further information.

Wow, what banks are charging 4-6%? I just did the transfer this week and it was 1% thru my credit union.

[sailingabroad]

Originally Posted by valhalla360

Wow, what banks are charging 4-6%? I just did the transfer this week and it was 1% thru my credit union.

Hi Valhalla360,

Yes it is unfortunate most global banks do take wide spreads like 4-6% and that is why you have to keep them honest.

In Australia the big Four banks will usually all have a spread of above 4% and the same goes for the US but usually higher. In the UK and France it's averaging around 3-5% but some European countries offer much tighter rates such as Sweden who have rates between .6-2% usually.

As a global norm banks usually don't go bellow 4% because there is no need for them as the general public are unaware of alternative options, such as a foreign exchange broker. They also offer more services than foreign exchange brokers and have to cover a lot more cost, so it's sometimes justified on their end but best to shop around.

I am glad to hear your credit union was able to give you an honest rate and wish more could do the same.

Regards,

Ed Wiley

[monte]

Val, beware that when they tell you there is a 1% fee for exchanging funds, that might be on top of their current exchange rate. The rate they use may be determined by themselves so it's worthwhile checking the options. Who would have thought banks might use smoke and mirrors sometimes

[Zzmeyer]

A data point. There are about 12 2007 Lagoon 44 for sale in Europe or the US. The one in the US is $469k and the average of the 11 European ones is $365k (Yachtworld). I just spent $50k shipping a similar size boat to US West Coast (50 foot monohull). Most will spend a fair amount in rewiring to US standards. Obviously too tough to tell how comparable the boats are from a simple listing (I left out Caribbean boats as I guess they are all charter). Not sure what it tells me? The transaction cost of buying a European boat is greater than a US boat (shipping and retro fitting), but there is still some significant savings?

[valhalla360]

Originally Posted by monte

Val, beware that when they tell you there is a 1% fee for exchanging funds, that might be on top of their current exchange rate. The rate they use may be determined by themselves so it's worthwhile checking the options. Who would have thought banks might use smoke and mirrors sometimes

Nope, this was based on the dollars taken out of my account (dollars taken out divided by euros paid) and then I pulled up the exchange rate on line to compare. It was right around 1%.

I do agree with shopping around, especially if you are looking at an expensive boat it can be worth a few thousand dollars.

[valhalla360]

Originally Posted by Zzmeyer

A data point. There are about 12 2007 Lagoon 44 for sale in Europe or the US. The one in the US is $469k and the average of the 11 European ones is $365k (Yachtworld). I just spent $50k shipping a similar size boat to US West Coast (50 foot monohull). Most will spend a fair amount in rewiring to US standards. Obviously too tough to tell how comparable the boats are from a simple listing (I left out Caribbean boats as I guess they are all charter). Not sure what it tells me? The transaction cost of buying a European boat is greater than a US boat (shipping and retro fitting), but there is still some significant savings?

Depends on your goals. We were looking at the inverse situation.

We were going to ship our US Boat to Europe and deal with power and other Europe specific issues. Instead, for not much more than the cost of round trip shipping, we have a second boat. Now we just need to sell our US boat.

Plus:
- If the euro stays low, it's relatively cheap to cruise Europe and we can keep doing it.
- If the euro goes back up to the $1.40 range, we are all but guaranteed we could sell it at a profit.

[monte]

I did start a thread a while ago on buying boats in the Caribbean that are priced in euros. There are tons of European private yachts for sale In The Caribbean and owners want their money in euros. A good opportunity for US buyers I think.
http://www.leboncoin.fr/nautisme/off...?f=a&th=1&ps=7

[Kiwicat]

When I made my recent purchase I was able to get a Euro loan from my New Zealand bank.
We just asked if the banks could lend us funding in Euros and they were happy to setup the foreign exchange account for us..
When the NZ/Euro was at its peak we chose the moment to pay down the loan.
Not sure if US banks do the same but we managed to save .10c on the dollar this way and bought a few toys with the discount/savings achieved.