How CurrencyFair can help when importing cars from the UK
Use savings on currency exchange to pay for petrol for 6 monthsIn a previous article, we discussed how FX volatility has a huge impact on import and export markets. Today we look at how one particular sector is booming as a result of the ongoing slide of the GBP. While UK car imports into the Irish market are soaring, consumers need to be aware of the potential costs associated with buying overseas. We took a look at how the changes in the GBP-EUR rate are accelerating sales, and how our customers are using CurrencyFair to fuel their new engines.
Car imports from the UK are soaringTo the end of July, 2017 has seen an incredible 53,415 used cars imported from the UK to Ireland. That represents nearly 40% growth versus the same period last year. This is driven by the lower prices and higher spec cars available in the UK used car market, and is magnified by the strength of the Euro against the Pound. So just how strong is the Euro right now? An Irish consumer looking to spend 20,000EUR on a used car would have received around 14,000GBP had he transferred his money on 31st July 2015. Just two years later, on 31st July 2017, that same consumer would have gotten 17,920GBP. That’s a staggering extra 28%, equating to £3,920 additional budget for car shopping! Amongst the most popular cars imported to Ireland are the Ford Focus, the Audi A4 and the 5 series BMW, typically 2-3 years old. The majority of cars purchased are within the range of £10,000 to £30,000. When paying in foreign currency, particularly for substantial amounts such as these, you are literally throwing away significant money by not using a dedicated, secure, regulated, low cost currency provider such as CurrencyFair.
How can CurrencyFair help car importers?Whilst major banks are currently charging between 2-5% for FX transactions, CurrencyFair has an average margin of 0.4% on the same transfers, with no hidden fees. 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 €10,875 to pay for the car;
- With a typical bank, you would require €11,128;
- In this instance, CurrencyFair is saving you €253.
- With CurrencyFair you will require €32,624;
- With a typical bank, you would require €33,383;
- In this instance, Currencyfair is saving you €759.