$ vs. Euro for purchase of French Cats

[Zzmeyer]

i've never made money in boating so I suspect I won't now either. Since the majority of boats are built in euro contries it will be interesting to see what happens. If you look at new boat prices on yachtworld there has yet to be a change in the US. Given that most of these boats were ordered 6-9 months ago there has to be some real pressure on dealers. Have any of you actually purchased a boat in the last month in the US at a substantially lower price than six months ago? I'm waiting for my dealer to call me and tell me he is lowering the price by 25% on the boat I ordered 5 months ago.

[monte]

I'm not sure why you would expect the price to drop if you ordered in USD, then that's the price. If you ordered in EUR then you did well. If in USD the dealer has to take up forward cover to mitigate any loss between order and delivery. It depends what your contract with the dealer states.

[Zzmeyer]

I was kidding. I bought in US dollars.

[GoingWalkabout]

Even large German Banks are now predicting parity of the Euro with the Dollar. Deutche Bank says within the next six months. I say within the next six weeks. Any one willing to say when they think the Dollar will pass the Euro? :big grin:

It is so good to be a buyer with Dollars then a seller these days.

[weavis]

Great for American/British tourists and holidays but ultimately will force prices up where Europe buys products in Dollars.

Exports from USA will slow and the economy will suffer through lack of trade and visitors.

My seminar fees (paid in Euros) in real terms is Euro/Sterling -30%. So for a day Seminar fee of 3K Euros, I lose 30% plus exchange fees. It means that I have to keep Euros in Europe to maintain value.

It will bite on so many levels in due course. Take advantage now before everything starts shaking.

I can still recall the days of $2.50 to the 1 pound Sterling. That made for a really cheap holiday..

Best get buying your boats now

[goboatingnow]

Originally Posted by weavis

Great for American/British tourists and holidays but ultimately will force prices up where Europe buys products in Dollars.



Exports from USA will slow and the economy will suffer through lack of trade and visitors.



My seminar fees (paid in Euros) in real terms is Euro/Sterling -30%. So for a day Seminar fee of 3K Euros, I lose 30% plus exchange fees. It means that I have to keep Euros in Europe to maintain value.



It will bite on so many levels in due course. Take advantage now before everything starts shaking.



I can still recall the days of $2.50 to the 1 pound Sterling. That made for a really cheap holiday..



Best get buying your boats now

The object of quantative easing is to force more money into the system. This inevitably cause falls in exchange rate. For the euro zone in danger of a period of deflation , lower exchange is good for trade and inflation

That's the object. I don't see it working well however as the transmission mechanisms are broken and the potential borrowers are actually deleveraging

The euro has been far to strong for an area hovering close to recession.

Countries like Germany and places like Ireland benefit hugely from lower exchange rates. Germany because its exports so much. Ireland because it has a huge US industrial presence.

Dave

[RKsailsolo]

Originally Posted by rabbi

Unless you happen to own a boat which will likely increase in value.

Hmmm, seems to be a matter of perspective. If you are a European buyer looking at an EU boat, it's relative. As an American buyer my choices are wider. Would not make sense to pay more for used or new boat than I need to compared to other markets. As much as I lust after your European based Mahe, I can buy the same or newer boat elsewhere for less. I've been monitoring Cotemar's well preserved 2009 Mahe (pre Evolution) for sale here in the states but with a growing number of competing boats in the market including ordering new, I wish him good luck.

Originally Posted by beauris

well there are always two sides to a coin... it might save the European boat industry as the USA is a very big market and we are becoming way more competitive...

Reality is that US sailing has been in decline for decades (but that's another thread). We Yanks are such a frenetic bunch, always in a hurry. Every day I see more trucks hauling new powerboats on the US interstate highways. Our boating industry is growing again but it's not sailboats. The Marion, SC Beneteau plant ships the majority of the Oceanis 38s offshore.

Originally Posted by BelizeBound

Walkabout, Do you know a lot about the Charter Deals? when My Lagoon 400 S2 Finally arrives in BVI is that I own 55% of the vessel in a Joint LLC & paid $270,000 for an all options included Cat. Charter company pays everything... I pay Nothing. She stays in charter for 5 years, where I get 12 weeks/ year use. 2 weeks in Prime Time, & I am allowed to sell 3 weeks of the remaining 10/ year as long as I don't use a 3rd party for advertisement. I own the Cat at the end of 5 years for $1.00. Personally I don't care if they Ever Charter it as it has no effect on me.. Have you had any experience with this scenario?

Not what it seems. Your unique scenario makes this choice work for you including the Belize condo that you already own, your ability to take that much time away from your occupation, and your future plan to keep this boat for five years after the charter is up. If any of those things shift, it also changes the plan benefits. If you had to sell the cat before or just after the charter contract is up, that boat must compete with others in a wide market. If I was looking for that cat in five years my choices would be more numerous than they are today simply because production appears to be adding more boats into the global market. BUT, I like your benefits package as its setup for you. Hope your plan delivers. In 2004 I owned two condos and a cat on a Gulf of Mexico barrier island on the NW Florida coast weathering two Hurricanes but not surviving the economic meltdown. It's all history now. Variables = Increased risk.

[gixxxer]

Have to say that this exchange rate is hitting hard for us that live in euro-zone.

I have a online shop that sells products that are imported from US and the rate is killing me. On the other hand, all my company royalties are paid in $ so it's two bladed sword for me

One thing good about European crashing economy is out house loan interest rates. In 2009 the interest was 5.6% and now it's 0.2% so that helps

And for the boats in general, I would guess that most European made used boats in US need to drop their price because you could basically get new boat cheaper at the moment.


Sent from my iPhone using Cruisers Sailing Forum

[goboatingnow]

Originally Posted by gixxxer

Have to say that this exchange rate is hitting hard for us that live in euro-zone.

I have a online shop that sells products that are imported from US and the rate is killing me. On the other hand, all my company royalties are paid in $ so it's two bladed sword for me

One thing good about European crashing economy is out house loan interest rates. In 2009 the interest was 5.6% and now it's 0.2% so that helps

And for the boats in general, I would guess that most European made used boats in US need to drop their price because you could basically get new boat cheaper at the moment.


Sent from my iPhone using Cruisers Sailing Forum

actually its good, as it benefits exporters and hits importers. IN your case a significant proportion of your trade is remitting money overseas, thats bad for the Eurozone. whereas selling boats produced in the Eurozone to dollar customers is great.

[Wellington]

I bought my ex-charter Lagoon 440 in euros. If I were to sell now, it would be 25-30% cheaper for an American buyer, and 10-15% cheaper for buyers from downunder... This rise of the USD is very good for sellers.

[edhargre]

I know the thread started with EUR, but the same applies to the ZAR (Rand), also significantly weaker...Yet I've always seen Leopard cats marketed in USD terms...I guess we should see a reduction in USD prices..or its up to buyers to negotiate...on the flip side the mighty Gunboats might have a tougher time competing with cats manufactured outside the US..

[Sand crab]

Originally Posted by edhargre

I know the thread started with EUR, but the same applies to the ZAR (Rand), also significantly weaker...Yet I've always seen Leopard cats marketed in USD terms...I guess we should see a reduction in USD prices..or its up to buyers to negotiate...on the flip side the mighty Gunboats might have a tougher time competing with cats manufactured outside the US..

Leopard was boasting that they are the largest seller of new cats in North America which may include parts of the Caribbean. It's no wonder that they price their boats in US dollars.

A Gunboat is like a Ferrari. If you want one and can afford it then you will buy one. The price is not that relevant to the 1%.

[GoingWalkabout]

Originally Posted by Sand crab

Leopard was boasting that they are the largest seller of new cats in North America which may include parts of the Caribbean. It's no wonder that they price their boats in US dollars.

A Gunboat is like a Ferrari. If you want one and can afford it then you will buy one. The price is not that relevant to the 1%.

Except Ferrari's don't fall to pieces when you take them out for a spin.

[GoingWalkabout]

Euro continues it's race to the bottom with another dramatic fall today. 1.05% fall just today.

Closed at $1.04805 against the greenback.

The large banks are saying that the Euro will go bellow the US Dollar in 12 months. This is misinformation so their trading desks can continue to make a killing without the general public getting in on the currency fall trading profits. It will be par and bellow par much much quicker.

I think you could see it trading at 0.80c to the dollar in 12 months.

This is a huger shakeout that we are now seeing and the slide is only picking up momentum.

[yah mon]

Originally Posted by GoingWalkabout

Euro continues it's race to the bottom with another dramatic fall today. 1.05% fall just today.

Closed at $1.04805 against the greenback.

The large banks are saying that the Euro will go bellow the US Dollar in 12 months. This is misinformation so their trading desks can continue to make a killing without the general public getting in on the currency fall trading profits. It will be par and bellow par much much quicker.

I think you could see it trading at 0.80c to the dollar in 12 months.

This is a huger shakeout that we are now seeing and the slide is only picking up momentum.

What you base the info on, do you have a crystal ball?
The euro has already made a massive slide recently, i am not saying we are at the bottom but these trends tend to overshoot and correct. I would imagine there be some heavy resistance at the par level.