How does this work?

  • Thread starter Thread starter Deleted User YDKXO
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Deleted User YDKXO

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Came across THIS page on the Boat Showrooms website. Obviously, I can understand that brokerage boats denominated in Sterling are looking v cheap right now to Euro buyers but they seem to be suggesting that it is cheaper for Euro buyers to buy new Dollar denominated Fleming and Grand Banks boats through them. How does this work?
 
I think they've just recognised that $ priced boats are attractive to Euro buyers. Maybe Euro dealers are trying to boost their margins by not reducing their Euro prices in proportion, so Boat Showrooms saw a chance to get in on the action?
 
'Dunno, but it's interesting to see that their boats "all include VAT paid status".
Phew! It must be expensive to buy that separately... /forums/images/graemlins/grin.gif
 
I guess that is the case but I'm wondering why they think a Euro buyer would find it cheaper to buy a Dollar denominated boat priced in Sterling. Why doesn't the Euro buyer just buy the boat in Dollars from his local dealer. It's the same thing as far as I can see unless Boat Showrooms are sitting on a big lump of Dollars bought at $2/£?
 
I dont think they are saying via GBP. Arent they saying that if you are in the eurozone, they can get your a USD denominated boat, taking advantage of the fact you own euros now buy you alot of USD ? Dont mention CE plating though...
 
I'm with Deleted User on this one, they actually seem to suggest that they can offer a double advantage of some sort.
Nothing new under the sun though, any boat buyer is always being offered the bargain of his life. And the trickier it looks, the better.
At least, that's what most boat sellers seem to believe.
 
I dunno what they're saying except they want Euro buyers to buy their Flemings and Grand Banks from Boat Showrooms but they'd get the same €/$ advantage if they bought from their local dealer as far as I can see
 
Would they? If you buy a Windy from Berthon they quote you a sterling price, so maybe if you buy a Grand Banks from Bateau Francais they quote you a Euro price? If the $/€ rate changes the French dealer has two options, try and sell more by passing on their fx saving, or try and get more profit on each sale by keeping it themselves.

If they take the latter option, it opens the door for another dealer anywhere in Europe, including the UK, to undercut them by passing on the saving. Maybe Boat Showrooms just noticed the door was ajar?
 
Could be but that only works if the exchange rate moves in favour of the French dealer after he's published his € prices and before he's paid $ for the boats. There can't be many GB and Fleming sales in Europe so you can't really imagine a French dealer risking losing a French sale to a UK dealer by trying to finesse the exchange rate
 
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