How CurrencyFair can help when importing cars from the UK [2020 Update]
With used car imports from the UK at a record high, Irish buyers can make serious savings going into 2020.In a previous article, we discussed how the FX volatility caused by Brexit has impacted import and export markets. The Irish car market has seen consumers take advantage of a weakened pound sterling against the euro to import cars from the UK to Ireland.
Used car imports from the UK into the Irish market continue to rise each year, so in 2020 consumers still need to be aware of the potential costs associated with buying from across the border. We took a look at how the changes in the GBP-EUR exchange rate are accelerating sales, and how our customers are using CurrencyFair to fuel their new engines.
Car imports from the UK are soaringIn recent years there has been a steady rise in the number of cars imported from the UK to Ireland. On the 2 January 2020, the Society of the Irish Motor Industry (SIMI) revealed the results of their 2019 data analysis. They confirmed that used car imports passed the 100,000 mark for the second year running, with year to date imports up 9.2%.
The reason for the continued poularity of used cars from the UK in Ireland has been driven not only by the higher spec as standard in used cars available in the UK but by the strength of the euro against the pound sterling,
Typically talk of a hard Brexit sees a drop in GBP. However the December 2019 win for British Prime Minister Boris Johnson’s Conservative Party settled markets when the 31 January 2020 withdrawal date was confirmed.
So just how strong is the euro right now?
A customer looking to import a used car in January 2015 would have seen the EUR-GBP exchange rate reach 0.93927 on the 7 January in 2015.
But the pound sterling has strengthened significantly in the past five years: In comparison to today the 7 January 2020, a customer looking to exchange €20,000 to buy a car would receive £16,918 with CurrencyFair, leaving car shoppers in 2020 with a lot more additional budget to go car shopping with! The most popular used cars in Ireland According to https://stats.beepbeep.ie/ , the top selling used car brands in Ireland in 2019 were:
- Volkswagen Golf
- Ford Focus
- Nissan Qashqai
- BMW 5 Series
- Audi A6
- Petrol Electric
- Petrol/Plug-In Electric Hybrid
When importing any car from the UK and paying for it in a foreign currency, it is advisable to shop around and try a different provider than maybe your typical bank. Online transfer experts like CurrencyFair can offer the security and support needed to ensure a stress-free car purchase and savings on your currency exchange.
How can CurrencyFair help car importers?Whilst major banks are currently charging between 3-6% for FX transactions, CurrencyFair has an average margin of 0.45% on the same transfers–but with no hidden fees. This means that for a consumer looking to buy a car valued at £10,000 car:
This means that for a consumer looking to buy a £10,000 car:
- With CurrencyFair (based on the rate at the time of writing) you will require €11,816.03 to pay for the car;
- With a typical bank, you would require € 12,145;
- In this instance, CurrencyFair is saving you almost €329.
When it comes to buying a £30,000 car:
- With CurrencyFair you will require €35,442.70;
- With a typical bank, you would require €36,387
- In this instance, Currencyfair is saving you €944
CurrencyFair savings pay for your petrolThanks to the savings our users are making through our currency exchange platform, CurrencyFair customers are also able to stay on the road for longer. Someone spending on average €40 per week on petrol can use their €328 in savings to cover their petrol costs and fill up their tank eight times – that’s two months of free petrol.
Someone spending £30,000 on a car and saving over €944 would get even longer on the road for free–for an average weekly petrol spend of €60, that could mean almost four months of driving at no extra cost!