A strong Euro over the last couple of years has put the poor old Pound under real pressure. But there are signs that it could be changing.
Problems in Greece early in the year put a slight wobble under the Euro, but the bailout of the Irish economy and worries about Spain, Portugal and Italy are making exchange rates more favourable as financial markets watch things shake down.
This is good news for caravanners, but not just for obvious reasons. Holiday costs are the obvious benefit. A better exchange rates means a cheaper baguette or two and your site fees will drop. Add in cheaper road tolls, diesel and ferries, and continental breaks could quickly get cheaper.
How British is your caravan?
If the Euro carries on weakening however, the cost savings could go even further. Although more than 95% of caravans sold in the UK are built in the UK, the value of the Euro is vital to UK manufacturers. Name a component in your British caravan, and the chances are that it was imported.
Chassis - Germany
Locker doors - Italy
Heaters - Germany
Entrance doors - Germany
Toilet - Holland
Windows – Germany
Fridges – Holland
Fixed-bed frames - Germany
Cookers – UK (Although Spinflo is part of Thetford, so Holland really)
The fact that so many of the constituent parts of the modern touring caravan are bought in Euros means caravan pricing is intrinsically linked to exchange rate.
It’s not a theoretical link either. In 2008, when the Euro strengthened and the pound came under pressure, caravan prices rose sharply. A 2007 Swift Challenger 540 cost £13995. In 2011, the equivalent van costs £16635 and much of that difference is due to exchange rate.
Cheaper caravans?
So are cheaper tourers on the cards? I wouldn’t hold your breath.
A lot of the components used to build a caravan are priced at the start of the year when the order is placed. If the parts are bought at the wrong time of the year, there isn't a cost saving to pass on.
And although caravans are our hobby, for manufactures and dealers, caravans are a business. If there happens to be a spare pound note floating around inside the business and sales are holding up, there’s little incentive to drop prices.
More choice
But if the weakening Euro becomes a trend rather than a quirk, we may see prices of UK tourers drop. And if conditions allow, we might see some of the European caravan giants dip a toe in the UK market again.
If Dethleffs, Burstner and Hymer pushed back into UK dealers alongside Adria (who never left), it would certainly shake up the market, and that may make pricing keener.
And the wider choice of caravans on the market would be a welcome headache for UK buyers.
Very interesting and well put
Very interesting and well put
All positive comments
All positive comments gratefully accepted :)
Useful comment.
Useful comment.
Intersting, but not too much
Intersting, but not too much sign of much weakening yet. I waiting to charge up a Euro cash card but since I've got the thing the rates have tended higher not lower. Fortuneately it's good for two years, so time yet.
considering the Euro v the
considering the Euro v the pound stood at a steady 1.5 down to 1.4 Euros to the pound for over 6 years of its life, I would not even start to speculate of a supposedly "weaker Euro" when it still sits 30% stronger than its more accustom value and not the Greece or Irish problems seem to have made an i oater of a difference. nor will we see any advantage till the Euro gets above 1.3....
I'd love to think the Euro's
I'd love to think the Euro's situation would make travelling in Europe cheaper but I doubt it. Unfortunately, although the Euro has weakened, a look at the financial performance of the pound is not inspiring. It is telling that a Euro is still worth about 85p despite its problems. I also doubt that the British Government will want the Euro to return to 67p as it was in 2004/2005 because of the potential effects on exports.