Why Imported Euro Cars Aren't Cheaper As The Euro Go Down ?

[JohanBKK]

Hello,

Why imported euro cars aren't cheaper as the euro go down ?

Thanks.

[thaicbr]

Because the importers are hedging against the euro going up again. Its a long term strategy.

[Thereisnoif]

Logic doesn't apply in Thailand, even less so when it comes to car pricing .

[BSJ]

The cars you see in the showroom now were ordered 8 months ago and the money to pay for them was hedged back then.

[Thereisnoif]

Thai grey market importers doing currency hedging ?

You gotta be xxxxxxx me.

[Jitar]

Over the last 10 years the Euro has been fluctuating between 40 and 50 baht. While there have been significant gains and losses over different 1 or 2 year periods, overall it is just swinging around.

Most importers try to smooth the fluctuation and avoid upsetting the market status quo. They can make a bit of profit as the Euro goes down and avoid adjusting prices for short term changes in exchange rate. Prestige brands do not have much to gain by discounting anyway.

If there is a sustained movement in the exchange rate you might see prices or equipment levels adjusted, particularly for the imported mid market cars. This has happened to some extent in Australia over the last few years to the detriment of locally produced cars.

[stevenl]

Besides the already mentioned fact that present stock was bought at a different exchange rate, as long as the market doesn't require them to reduce the prices they won't.

Same as, almost worldwide, a higher US$ leads to increased gas [prices and a lower US$ doesn't lead to lower gas prices. They can get away with it.