Price increase due to Euro exchange rate Forums

oldenstar

Having had a van on order since October NEC, and expecting delivery in a few weeks, I have today had a letter from the dealer explaining that due to the dramatic fall of the Pound against the Euro the manufacturer had to increase the Sterling price.
He explained that in the circumstances both he, the dealer, and the manufacturer would share the burden of the increase leaving me to find one third of the increase (around £600).
This is a relatively small dealer (2 branches), and generally I think I have a good deal, but I am interested in your comments about this. (I understand it is covered in the small print on the order form)
He enclosed a new price list, but I am a bit miffed to find that despite the letter to me his website is still showing the pre increase prices. Rolling Eyes

Will this exchange rate result in price increases for most vans?

Zebedee · Moderator

Hi Oldenstar

That's a bit of a bummer, and I bet the price would not have come down if the Euro had gone the other way!!

However, before the advice arrives about hiring a lawyer, refusing the van, demanding it at the price you agreed etc., etc., I think one has to be reasonable and see all three sides of the argument.

Someone has to lose, and assuming what you have been told is accurate (no reason to doubt it?) I would say a three-way share is a pretty amicable solution for all concerned. After all, 600 quid on top of the price of a new truck is not that much - though it would have kept you in single malt for a day or two!!!

Just my opinion - I become less stroppy as I get older but I'm not saying I'm right!

Cheers

P.S. He probably has to wait for whoever does his website to make the changes - or he may be hannging on to see if they have stabilised.

androidGB

Depending on how much deposit you paid it may or may not be reasonable.

When I had my business we would "buy forward" currency when purchasing large pieces of capital equipment. There was a small cost but there were no nasty shocks.

Your dealer of course had this option

Andrew

Willows18

My parents are in the same boat. I was chatting to my Mum this evening. They have had their solicitor look at the contract and there is a clause to state this could happen.

They were ready to cancel their order, stick with their existing m/h and wait until dussledorf later this year (they want a very specific A-class), but have decided to pay the extra 3rd of the cost and stick with it, as there isn't really anything else that meets their requirements.

I should imagine there are going to be quite a few upset customers out there.

Shark

This has been quite a sudden and severe drop in the exchange rate. The commerical rate fluctuated between 1.4 and 1.5 for the past six years, whilst I had a vested interest as a French property owner. Even in September 2007, when I sold that house, the rate was nicely situated between that upper and lower figure. Since then, it's slumped and I doubt if anyone could have foreseen it - especially, as the pound has been so strong against the US dollar. So, I for one was wondering when motorhome prices would start to be noticeably affected by the drop in the £, for European goods. It's not unusual for converters to set prices for the whole year ahead. However, whether they can afford to do that now, remains to be seen.

It seems you're the first to feel the effects, and I doubt you'll be the last. For the supplier and your dealer to absorb two thirds of the price increase does seem pretty reasonable. However, I would be doing a quick check on my calculator to see if the whole price increase your vehicle has sustained, is commensurate with the drop in the £ against the Euro over this past few months. Only then can the 'generous' offer of supplier and dealer be put in perspective.

Of course, it all begs the question whether the price of the motorhome would have gone down had the £ suddenly surged against the Euro over the same period.

Shaun

Rapide561

Hi

I am amzed that a company open to exchange rate fluctuations has not taken out forward contracts with their bankers.

I wonder if they euro rate had weakened - ie more euro to the pound, would they have refunded you?

I personally would check the paperwork/order form thoroughly.

Russell

silversurfa

All Imported goods will rise in price . Hopefully Brits will buy British.

£ will drop to maybe 1.25 =€

androidGB

04HBG

Telbell

Same thing happened to us with the one we have on order. They did say they would reduce price accordingly if Exchange rate returns to previous rate!