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Euro/Dollar thoughts

Discussion in 'Europe' started by drchako, Dec 31, 2003.

  1. drchako

    drchako Formula Junior

    Dec 29, 2003
    343
    Palo Alto, CA
    I'm new to F-chat, and this is my first post. There seems to be a wealth of information here, and I'm hoping someone can give me some advice.

    I am in the US military and stationed in Wuerzburg, Germany. When I got here, the exchange rate was $1 = Euro 1.07. Now it's $1 = Euro 0.77. It sucks to even go out to eat - it's about 30% more expensive than just a year ago!!

    I've saved my pennies, and I'm thinking about how use the crappy exchange rate to my advantage (and how to get a Ferrari out of the deal), I could ship a Euro Spec ferrari from the states to Germany, drive it for the rest of the time I'm here, and sell it before I leave. The pundits say that the exchange rate wont change much over the next 1 - 2 years, and even if it does, I get to pilot a ferrari on the autobahn!!

    Thoughts?
     
  2. jbanzai

    jbanzai Formula 3

    Feb 1, 2002
    1,564
    Madrid, Spain
    Full Name:
    Julio
    It could be interesting. Though you have to think that you will have to mantain that car in Europe.

    Depending on the Ferrari you buy, and if nothing goes wrong with it, plan to expend about 7% to 10% of the value of the car in maintenance every year, plus the insurance.

    With the dollar at the actual exchange rate you will be paying 30% more than any of us, do not forget that too.

    Who ever buys the car when you sell it, (unless is another US resident) will have to pay import taxes and licensing fees that will add between 25% to 38% over the price that you paid in the US.

    I know this because I was a living in the US and when I returned, I brought the car with me. As I am a Spanish citizen, and I owned the car for more than 1 year, almost 2, in the US before bringing it overseas, I was exempt to pay taxes here. But, if I sell it, whoever buys it will have to pay those taxes.

    If you find a real good car, trouble free, and at a real good price, then it might work, but it is difficult.

    Just my 2 cents!

    Julio.
     
  3. F SPIDER

    F SPIDER F1 Rookie
    Owner

    Jan 30, 2002
    2,873
    NYC, A'dam, W'stock
    Full Name:
    rijk rietveld
    drchako

    As long as the US has such a huge trade deficit AND low interest, the Dollar will stay low, and will probably even go lower.

    The Euro has been introduced 5 years ago, and compared to the starting rate of $1.18/€, the current $1.26/€ is not so far off. If you look over the last 10 years, the current exchange rate is not so crazy. The Euro had to go through some growing pains and lost a lot of weight when it did not phisically exist. Since the release of the actual money it has been coming back.

    Since I am earning in Euros and have all my business cost in Dollars, we had a very hard time during the strong Dollar time. It sunk from $1.18 to $0.84. So we had 35% less income for the same work, and almost went under. Now we are making it up in spades (big smile)

    Rijk
     
  4. drchako

    drchako Formula Junior

    Dec 29, 2003
    343
    Palo Alto, CA
    So here is how I think it would work:

    I've had my eye on a Euro spec 348 for about $50,000. I buy it in the states, ship it over here to Germany and drive it for a year or two.

    When I sell it (before I return to the states), I can charge 38,500 Euro and get back exactly what I paid for it (less maintenance costs, insurance, shipping etc).

    Where is the flaw in the logic?

    -DrC
     
  5. Wolfgang

    Wolfgang F1 World Champ
    Lifetime Rossa

    Mar 8, 2003
    16,743
    Heidelberg, Germany
    Full Name:
    Wolfgang
    Hard to sell a 2 - 3 owners F348, Europe-US-Europe for €: 38.5K...IMHO.
    Realistic would be something around €: 30K CASH.
    Have a look here:
    http://www.mobile.de/SID85.m59xhfuHcG7PQtMQnZQ-t-vaNexlCsAsK%F3P%F3R~BmSB10LsearchPublicJ1072956926A1LsearchPublicCCarS-t-vpLtt~BmPA1B20A0R-t-v_X_x~BSRA6A2A0/cgi-bin/searchPublic.pl?_form=search&sr_make=8600&sr_model=348&sr_priceFrom=-2&sr_priceTo=-2&sr_category=-2&sr_powerRange=-2&sr_registrationDateFrom=-2&sr_registrationDateTo=-2&sr_mileageFrom=-2&sr_mileageTo=-2&sr_engineType=-2&sr_doorCount=-2&sr_color=-2&sr_country=-2&sr_zip=&sr_zipRadiusTo=-2&sr_damaged=0&sr_daysOldTo=-2&sr_sortOrder=0&doSearch.x=46&doSearch.y=12
    just all ASKING prices !!!!!!!!!! And they will also drop down a bit more within the next 1-2 years.

    Wolfarossa
    FORZA FERRARI
     
  6. drchako

    drchako Formula Junior

    Dec 29, 2003
    343
    Palo Alto, CA
    Thanks for the link. I was in Heidelberg just a few weeks ago.

    I had no idea that Ferraris here could be had for that little (even though the exchange rate really pushes it up - I get paid in US dollars). I guess I've been spending too much time on eBay...

    Is there a better choice than the 348? Is there a ferrari that will hold it's value, perhaps even selling for more Euros than dollars? A brief search on that link showed several F360's for around 100,000 Euros and up. Do they sell here?
     
  7. Wolfgang

    Wolfgang F1 World Champ
    Lifetime Rossa

    Mar 8, 2003
    16,743
    Heidelberg, Germany
    Full Name:
    Wolfgang
    Do you just want to drive "a" (don`t care about which type) Ferrari, or are you serious looking for a special type/model?
    How much do you want to spend for the Ferrari?
    355 and 360 are highly sought after Ferraris here in Germany and you won`t loose too much money after 1-2 years.
    Try to buy a 1-2 owners Ferrari here in Germany and sell it here when you must go back. So its a European Ferrari with history and records and easy to sell again.
    I love this www.mobile.de very much. I bought my 308GTSi QV, 1985 over mobile.de, sold it over mobile,de and bought my `91 Testarossa over mobile.de.
    Don`t forget: JUST ALL ASKING PRICES!!!!!!
    Money/cash talks (no trades, watches, carpets just cash)!

    Just give me a call, when you are next time in my area. There are always several 328GTS, 348 ts for sale here (friends of mine or members of the FCD).

    Wolfarossa
    FORZA FERRARI
     
  8. Dutchman

    Dutchman F1 Veteran
    Owner Lifetime Rossa

    Dec 4, 2002
    6,180
    EU
    Full Name:
    Ton
    Before the Euro the Dollar was very expensive. Nowadays it is the other way around. Europeans felt like you do for years when they went to the US.

    Still I think that Ferrari's are a good buy in Europe. Take your time.

    Ton
     
  9. jbanzai

    jbanzai Formula 3

    Feb 1, 2002
    1,564
    Madrid, Spain
    Full Name:
    Julio
    Even for the US 50000 US$ for a that 348 is way to expensive. when i bought my 328 in California, I had the oportunity to buy a Black '92 348 GTB with 25000 miles for 38000 US$. This was 3 years ago.

    What you are missing in your thinking is that even if you find somebody willing to pay 38000 Euros for a US 348. Who ever buys it will have to paya an extra 25% of that in taxes. If you add that is like the buyer would be paying almost 48000 Euros. Nobody will go for that.

    As the other members said, look for a European version. If you want to recover your investment look for a late 1 or 2 owners 355. That should not loose too much in the next 2 years.

    If you whant somthing cheap look for a high millage 308 or 328 get it inspected. Somebody I know bought a 60000 km 308 QV for 18.000 Euros, the car was not runing right, but he got it inspected and the diagosis was that it was easily fixable. He spent 2000 Euros in a major and the car are runs beutiful now.

    In my opinion if he sells it now could even get a bit more than what he paid.

    BTW in some things I am suffering the exchange rate down if the dollar too. I have option stock in the US as I work for a US company, and the actual exchange rate is also killing me. The stock is high, but with the dollar at this rate it makes not sense selling it. Arghhhhh!!!!

    - Julio
     
  10. drchako

    drchako Formula Junior

    Dec 29, 2003
    343
    Palo Alto, CA
    I was a little worried about buying a car sight-unseen, and shipping it here. Maybe buying one here makes more sense.

    Anyone have a recommendation for a good dealer here in Germany? I live in Wuerzburg, and there is a ferrari dealer just down the B8 at a place called Mainfrankenpark. I've been in there and they have a great selection of new cars on the showroom floor (including a beautiful F50 and a Dino that the saleswoman said, "look but don't touch.")

    Also, are most prices listed as MwST (the 16% tax) included, or should I add it on? Mein Deutsche is nicht so gut.
     
  11. jbanzai

    jbanzai Formula 3

    Feb 1, 2002
    1,564
    Madrid, Spain
    Full Name:
    Julio
    I do not know in Germany, but in Spain if you buy a second hand car from an individual you do not have to pay any taxes, as far as the car is already documented and legal in Europe, well not exactlly Europe, in any of the EU members.

    Now if you buy it from a dealer, here you have to pay 6% in something called Property Transfer Taxes, but no VAT.

    Here, what many exotic car delaers do is that they have the cars in the showroom in deposit. The car is still property of the original owner. When they sell a car, they get a comision from the seller, but the title change is between individuals, and therefore there is no additional costs.

    Although this is EU there are still small differences, it might be different in Germany, I don't know.

    - Julio.
     
  12. Dutchman

    Dutchman F1 Veteran
    Owner Lifetime Rossa

    Dec 4, 2002
    6,180
    EU
    Full Name:
    Ton
  13. Malfark

    Malfark F1 Veteran

    Oct 31, 2002
    5,307
    Mud Island, Europe
    Full Name:
    Markem
    Hmmmm!!! There's definitely one of those dealers that I would NOT recommend!! :mad:

    Hey Ton - how are you doing?? :D

    Cheers, MARK
     
  14. Dutchman

    Dutchman F1 Veteran
    Owner Lifetime Rossa

    Dec 4, 2002
    6,180
    EU
    Full Name:
    Ton
    Hi Mark,

    I am fine! Still working my ass off, but that's OK!
    It is great to have you back.

    Ton
     

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