Eventual Pricing on Cats when EURO crashed to under Par to USD?

[vegasandre]

Looking at a used cat in the 45-50 ft range probably a 47' Cantana.

With the EURO currently at 1.34-1.35 usd and its eventual "DATE WITH DESTINY" AT UNDER 1.00 TO THE usd(A CERTAINTY I MAY ADD)


what do you think will happen to Cat pricing which seems to be mostly in Euro denomination?

[deeman]

I highly doubt the prices will fluctuate based on the strength of the euro. Just my 2 cents.

[night0wl]

At that point, I foresee Beneteau & Jeanneau shifting production *BACK* to France and more profit margin in their pocket. Prices dont come down....they just dont rise every year "as much" or it translates to profit in the pockets of the company.

Has BMW *EVER* lowered prices? Nope.

[vegasandre]

I think it will have a large effect on 2nd hand boats . Lets take this example right now:

2006 Catana 47 Ocean Class Sail Boat For Sale - Boats for Sale, New and Used Boats and Yachts - YachtWorld.com

Interesting will be the effect on 2nd hand boat pricing. For instance when the euro rallied against the dollar these past 5 years- you didnt see the individual US boat sellers raise their pricing because the dollar was so weak. Most didnt even know or care too much about this. Basically 400k usd was 400k USD regardelss of what the euro,pound,yen ,franc was doing.

some here are suggesting that lets say a french individual who had to unload their Catana and was selling it for lets say- 400k EU. He was unable to sell it for a year. For arguments sake- lets say during that time the Euro was falling towards dollar parity. Many are saying here that he would now raise the price of the boat to match the falling rate of the EU to lets say 500k EU.

there is no way he would do that (new builders-maybe). So that 400k EU Catana 47 that would cost me 560kusd this year- right now -would in fact only cost me 400k usd next year with the exchange at even parity.

[brak]

If Euro falls that far that soon, I foresee more need of guns, ammo and canned goods.

High end sailing catamarans will probably be available free, as long as you don't mind forcing the squatters out yourself.

[QuickMick]

interesting question, while you are "certain" that the $ will go back to under par, I hope you didn't bet the farm and put it all on black... a la roulette, I am not as nearly as certain as you... In any case, I would suspect that the types of people who can afford to own 45-50 foot boats are the types of people that dont have to sell... they can wait for a better market, list their boat internationally or have crew sail it to more favorable markets.

[PCP]

Originally Posted by brak

If Euro falls that far that soon, I foresee more need of guns, ammo and canned goods.

High end sailing catamarans will probably be available free, as long as you don't mind forcing the squatters out yourself.

Fact is that most of European economist think that Euro should devalue face to the dollar. That would make Europe more competitive.

However if the Euro devalues that much it would mean trouble in Europe but also trouble in the US that would be not competitive face to such a big devaluation. I guess you guys would soon all be driven Mercedes and BMW to the cost of American industry.

Regards

Paulo

[night0wl]

Germany really is in the cat-bird seat with this one. Exports are already very strong, and due to the crisis caused by the other Eurozone countries, they'll sell even more. All the while berating and belittling the countries that aren't fiscally sound. Typical German arrogance. Last time it was like this, some Serbs took it out on an Austrian arch-duke!

[PaulfromNWOnt]

It's supply and demand. If there are more boats then buyers, prices will be lower. Only if the devaluation of the currency brings with it a rush to sell boats will the prices go down. If the confidence in the economy remains fairly stable, then there will be no glut and prices will remain stable.

In short, people will try to hawk their goods for whatever price they can get be it higher or lower. Your view of that price will be affected by many things not directly related to the value of the listing currency.

[Chris12345]

Pretty dim understanding of exchange rates here, have we? The US and Europe both try to be exporters, mainly.
IF the EURO would drop that low, meaning IF the US gvmnt would be weak enough to allow that, than the Mercin Conomy would be so dead that no one there could afford even a Catalina 27.
Europe, otoh, would be doing so well that catamaran prices would skyrocket. They ARE luxury goods, after all.

Originally Posted by vegasandre

Looking at a used cat in the 45-50 ft range probably a 47' Cantana.

With the EURO currently at 1.34-1.35 usd and its eventual "DATE WITH DESTINY" AT UNDER 1.00 TO THE usd(A CERTAINTY I MAY ADD)


what do you think will happen to Cat pricing which seems to be mostly in Euro denomination?