# Price increase due to Euro exchange rate



## oldenstar (Nov 9, 2006)

Having had a van on order since October NEC, and expecting delivery in a few weeks, I have today had a letter from the dealer explaining that due to the dramatic fall of the Pound against the Euro the manufacturer had to increase the Sterling price.
He explained that in the circumstances both he, the dealer, and the manufacturer would share the burden of the increase leaving me to find one third of the increase (around £600).
This is a relatively small dealer (2 branches), and generally I think I have a good deal, but I am interested in your comments about this. (I understand it is covered in the small print on the order form)
He enclosed a new price list, but I am a bit miffed to find that despite the letter to me his website is still showing the pre increase prices. :roll: 

Will this exchange rate result in price increases for most vans?


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## Zebedee (Oct 3, 2007)

Hi Oldenstar

That's a bit of a bummer, and I bet the price would not have come down if the Euro had gone the other way!!

However, before the advice arrives about hiring a lawyer, refusing the van, demanding it at the price you agreed etc., etc., I think one has to be reasonable and see all three sides of the argument.

Someone has to lose, and assuming what you have been told is accurate (no reason to doubt it?) I would say a three-way share is a pretty amicable solution for all concerned. After all, 600 quid on top of the price of a new truck is not that much - though it would have kept you in single malt for a day or two!!!

Just my opinion - I become less stroppy as I get older but I'm not saying I'm right!

Cheers

P.S. He probably has to wait for whoever does his website to make the changes - or he may be hannging on to see if they have stabilised.


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## androidGB (May 26, 2005)

Depending on how much deposit you paid it may or may not be reasonable.

When I had my business we would "buy forward" currency when purchasing large pieces of capital equipment. There was a small cost but there were no nasty shocks.

Your dealer of course had this option


Andrew


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## 106986 (Sep 12, 2007)

My parents are in the same boat. I was chatting to my Mum this evening. They have had their solicitor look at the contract and there is a clause to state this could happen.

They were ready to cancel their order, stick with their existing m/h and wait until dussledorf later this year (they want a very specific A-class), but have decided to pay the extra 3rd of the cost and stick with it, as there isn't really anything else that meets their requirements.

I should imagine there are going to be quite a few upset customers out there.


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## 107925 (Oct 27, 2007)

This has been quite a sudden and severe drop in the exchange rate. The commerical rate fluctuated between 1.4 and 1.5 for the past six years, whilst I had a vested interest as a French property owner. Even in September 2007, when I sold that house, the rate was nicely situated between that upper and lower figure. Since then, it's slumped and I doubt if anyone could have foreseen it - especially, as the pound has been so strong against the US dollar. So, I for one was wondering when motorhome prices would start to be noticeably affected by the drop in the £, for European goods. It's not unusual for converters to set prices for the whole year ahead. However, whether they can afford to do that now, remains to be seen.

It seems you're the first to feel the effects, and I doubt you'll be the last. For the supplier and your dealer to absorb two thirds of the price increase does seem pretty reasonable. However, I would be doing a quick check on my calculator to see if the whole price increase your vehicle has sustained, is commensurate with the drop in the £ against the Euro over this past few months. Only then can the 'generous' offer of supplier and dealer be put in perspective.

Of course, it all begs the question whether the price of the motorhome would have gone down had the £ suddenly surged against the Euro over the same period.

Shaun


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## Rapide561 (Oct 1, 2005)

*Currency*

Hi

I am amzed that a company open to exchange rate fluctuations has not taken out forward contracts with their bankers.

I wonder if they euro rate had weakened - ie more euro to the pound, would they have refunded you?

I personally would check the paperwork/order form thoroughly.

Russell


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## 101405 (Oct 15, 2006)

*imports price up*

All Imported goods will rise in price . Hopefully Brits will buy British.

£ will drop to maybe 1.25 =€


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## androidGB (May 26, 2005)

*Re: imports price up*



silversurfa said:


> Hopefully Brits will buy British.


We would if we made anything 

Andrew


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## 04HBG (Dec 9, 2007)

*Re: imports price up*



silversurfa said:


> All Imported goods will rise in price . Hopefully Brits will buy British.
> 
> £ will drop to maybe 1.25 =€


No I think it will fall to £ to 1.00 yes one for one !!! 
and then this government will take us into the euro, a nice little 30% devaluation for us and no say in it.


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## Telbell (May 1, 2005)

Same thing happened to us with the one we have on order. They did say they would reduce price accordingly if Exchange rate returns to previous rate!


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## 107990 (Oct 30, 2007)

All Imported goods will rise in price . Hopefully Brits will buy British. 

£ will drop to maybe 1.25 =€


Bit rich for someone who gives a spanish location and has a Hymer.


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## dbh1961 (Apr 13, 2007)

Our Company were advised 3 years ago that the Euro would move from 1.5 to around 1.35 "in 2 to 3 year's time"

It did, and we were expecting it, so had forward bought several million Euros

We are currently being told it will hover in the 1.25 to 1.35 range, for the next 2 years. Our sources were right before, so we're trusting them again

We are now buying our Euros more or less as and when needed, but only when the rate is close to 1.35.

Back to the subject of the dealer wanting you to bear part of the cost, I would say it's fair, and I'd pay it. It's worth £600 to get the dealer's goodwill.

The total of £1800 (split 3 ways) seems good value. Assuming a £40k ish motorhome, then £1800 only covers the movement from 1.41 to 1.35, so maybe the dealer has managed to forward buy currency.


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## motoroamin (May 22, 2006)

We have been advised of some price increases already and are likely to see alot more at NEC. 
We made a brief post on our blog of what was going on last month.


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## 99898 (Jul 4, 2006)

For what it's worth, I think they're being quite reasonable about it.

The fall of the Euro/GBP exchange rate has been quite dramatic. In the summer, I put a deposit on a MH with German dealer at a rate of 1.48. I just recently paid the balance at ... 1.33. The cost increase amounts to a couple of thousand pounds, I've learned to live with it! However, next time, I'll pay more attention to the exchange rate trends, I didn't realise it could change so dramatically in 3-4 months.

At least one thing I did do right, I used a company called MoneyCorp to make the transfers, their rates are much better than the bank rates (I'm not affiliated to them, just recommend them). They will allow you to agree the exchange rate weeks or months ahead of the actual payment - and you don't have to pay it until the time of the transfer. There are other companies that also provide this service, certainly, you will save over the banks.

Here's a link to show the fall of GBP against Euro:
http://www.x-rates.com/d/EUR/GBP/graph120.html


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## 107990 (Oct 30, 2007)

I think they are out of order. They should of bought the euros when you paid your deposit. If the pound had risen do you think they would have offered you a reduction, i think not. It's rather heads they win, tails the punter looses. I might have more sympathy if they hadn't been charging us so much more than our continental cousins for so long. If you buy direct from a european dealer you assume the currency risk yourself, seems fair enough.


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## 107990 (Oct 30, 2007)

You should also be aware that the pound is actually now gaining significantly versus the euro. The pound is at it's highest today since the 1st of January and looks like going higher. I prefer to think what it costs to buy a euro and today it's 74p against about 77p when the pound was at it's weakest.


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## Rapide561 (Oct 1, 2005)

*Forward contracts*

Hi

Just a quick word about buying your currency forward.

I shall use ficticious rates just for the example.

You have decided that you will import a motorhome from Germany and will pay for it on 30 September 2008.

The motorhome is costing 50000 euro. The rate of exchange today is 1.35, so a sterling equivalent of £37,037.

You telephone your bank - all high street banks offer a forward contract facility - and tell them the date you need to settle up for the motorhome. The rate offered for a FIXED DATE forward contract is 1.25. Your 50000 euro will cost you £40,000 on 30 Sept 2008. Whilst it is more than todays cost, you decide the forward contract is for you, as it gives you peace of mind.

Now the 30th September approaches and here are two hyperthetical situations.

1) The euro rate is now a whopping 1.55 to the pound. You 50,000 euro will cost £32258 to buy on the day. However, your forward contract is exactly that - a contract and you must use it. Yikes - you are a lot worse off than if you had not bothered.

2) Scenario 2 sees the euro rate at 1.1 on the 30th September. This would mean 50000 euro would cost you £45,454. Yippee - you have done a good thing by taking out the forward contract.

The other option is to open a foreign currency account. Again, all the high street banks offer this. The account is based in the UK and instead of sterling is in euro. You simply buy euro at the commercial rate on the day and the bank pays euro into the euro account, debiting the sterling account with the cost.

A UK based euro account, whilst it may come with a cheque book, cannot be simply used to make purchases with overseas. (Well it can, but then you are potentially into something called an inward collection or a cheque negotiation.......)

Russell


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## 102731 (Jan 30, 2007)

This is not unusual and in the new car world price increases after you've placed your order have to be borne by the purchaser. In fact I'm sure the SMMT contract has a clause in it to cover this eventuality. Only having to pay one third of the increase I would call a result!


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## carol (May 9, 2005)

As someone who ordered a mh from Dusseldorf, for delivery April/May (dates given at the time), rate we were getting at that time from Nationwide on purchases was 1.47 even 1.48 on two!!!

Like others have said, we didn't think too much about forward buying (and I didn't even know of it then), and as the rate hadn't done much below 1.45 for ages, we weren't even worried.

Thanks for framptoncotterel (Roy Tipping) for telling me about the www.currenciesdirect.co.uk (it might have a hypen) but sounds like a similar one to one mentioned earlier in the thread, we did what he suggested, and having paid a 20% deposit in early December as agree, we forward bought about £20,000.... in the hope that it might go up a bit by April...well we can but hope...

Ours is a difference of now around £5-6k.... which is a hell of a lot, so, Oldenstar, at £600 - grab their hand.

I did speak to Rapido Caravans at Shepton Mallet, and he said that he had just a few days before - forward bought some euro's, which was saving them, but they were putting their prices up at that show in January.....

As they say c'est la vie!!!

Carol


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## oldenstar (Nov 9, 2006)

Thanks to all who responded.

For further info the van is just over £30k (£40k too much for my circumstances), and initial deposit was £1k.

All in all the consensus generally seems to be that the dealer and manufacturer are being pretty fair, so I will probably go along with it, providing that the van can be supplied on time.

I will be trotting along to the NEC next week so will hold my fire until then.

Great to be able to put this sort of question to the forum-certainly helps with decisions.
Paul


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## carol (May 9, 2005)

Paul what day are you going? I'm going on Tuesday.... hope it works out well and you get the mh on time....

Carol


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## kontikiJo (Dec 31, 2007)

I also bought a motor caravan at the NEC last october and it is due to be delivered in April, it is a German built, so therefore I wonder whether the same will apply to me. Not the news you want to read before going to bed. Thank you for the information anyway. I shall keep you all informed. Regards Joe


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## carol (May 9, 2005)

kontikiJo said:


> I also bought a motor caravan at the NEC last october and it is due to be delivered in April, it is a German built, so therefore I wonder whether the same will apply to me. Not the news you want to read before going to bed. Thank you for the information anyway. I shall keep you all informed. Regards Joe


Joe, I would have thought your dealer would have contacted you if there was a price increase, I haven't had an increase, I have been caught out by the falling dollar.... but if you are concerned, I suppose you need to check your small print and phone the Dealer.

Carol


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## 109481 (Jan 25, 2008)

Just checked with Brownhills regarding my notorhome ordered in August 2007. Thet are not upping the price


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## oldenstar (Nov 9, 2006)

Hi Carol
I too am going up on Tuesday, staying at Kingsbury Water Park (C & CC Site), and visiting the NEC on Wednesday.
Useful getting the old codgers rate, both at the Site and the NEC. :wink: 
Should be my last nights in the Tribute all being well, but will certainly miss its convenience.

Will be very interesting to see the prices at the show.

Paul


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## Telbell (May 1, 2005)

Kingsbury is a nice site. If you havent been before take the opportunity of strolling around the lakes and take your binoculars and camera.


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## WingPete (Jan 29, 2006)

*Similar to Skimbo*

I also had the wind up on this thread, and spoke to Brownhills today, who confirmed, no increase. Thay have absorbed it rather than lose customers.


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## 107990 (Oct 30, 2007)

Just in case anyone is thinking of ordering a new van at the NEC this week. Sterling is getting a real good spanking in the wake of the Northern Crock nationalisation. It will cost you over 75p to buy a euro this morning.


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## Telbell (May 1, 2005)

Sound advice indeed! It would be wise to get assurances from Dealers regarding future price rises between Order and delivery


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## camper69 (Aug 30, 2007)

I think the dealer has a bolldy cheek to ask for more.

Personnally if I have agreed a price in sterling in the UK then that is the only price I would pay. 

If you wanted to take on currency speculation them you would have purchased the m/h in another country. 

As has already been mention the dealer would not reduce the price if it had gone the other way.



Derek


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## TonyH (May 1, 2005)

Rate now 



1.00 GBP = 1.32666 EUR


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## androidGB (May 26, 2005)

skimbo said:


> Just checked with Brownhills regarding my notorhome ordered in August 2007. Thet are not upping the price


WingPete also said "I also had the wind up on this thread, and spoke to Brownhills today, who confirmed, no increase. Thay have absorbed it rather
than lose customers."

But not a word of congratulations for Brownhills, everybody's always quick to criticise but when they act honourably, or maybe they got they've got the sense to buy forward or fix their prices.

Andrew


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## oldenstar (Nov 9, 2006)

> But not a word of congratulations for Brownhills, everybody's always quick to criticise but when they act honourably, or maybe they got they've got the sense to buy forward or fix their prices.


I think that is a fair point.

I did look again at the Carado on their stand, which is stunning value for money, and asked the question.
Salesman confirmed that prices would be held on those already ordered
and that they are now £1000 more than last October.
As Hymer has now put their name on the back (Carado by Hymer) I think that these vans look a hell of a bargain.
Paul


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## les1 (Mar 22, 2008)

oldenstar said:


> > But not a word of congratulations for Brownhills, everybody's always quick to criticise but when they act honourably, or maybe they got they've got the sense to buy forward or fix their prices.
> 
> 
> I think that is a fair point.
> ...


THIS IS LES1
I have ordered a carado from Brownhills in Oct 2007 with a delivery date of March 2008 It hasn`t happened its now due for May 2008 Dont`t hold your Breath. I have been told that no right hand drive Carados have been built yet. Think very carefully before you buy one


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## trek (May 1, 2005)

Just been advised that my new european van ordered in september 07 from a UK dealer for a spring 08 delivery has been built and is ready to ship to the UK but the dealer is not prepared to pay for it until the euro improves against the pound


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## DABurleigh (May 9, 2005)

Fascinating (well for me, in my detached position; not the sort of word you'll be uttering I imagine. My commiserations).

I suggest you establish your bottom line with your dealer. What does he undertake to deliver you by when? What is your position if the van is 1 month late? 2 months late? Etc. 

In advance of any negotiation, I suggest you think carefully about what you want, and realistically would hold out for. Don't bluff. 

Dave


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## ICDSUN (Oct 10, 2006)

trek said:


> Just been advised that my new european van ordered in september 07 from a UK dealer for a spring 08 delivery has been built and is ready to ship to the UK but the dealer is not prepared to pay for it until the euro improves against the pound


Trek

I think you will have a long wait for that to happen, if they gave you a date/month remind them that if they miss that date they are in breach of contract and you will expect some compensation or damages for your loss.

I would be surprised if the dealer has not committed or forward purchased his Euros which is common practice, the rate in Sep 07 was 1.437 mid month, today 1.247 so approx 13% increase on his cost price, not your purchase price, has he had a deposit from you from your initial order, if so he has been able to use that for free or if he paid the manufacturer a deposit (unlikely) the amount of increase would be reduced.

Who is the dealer

Chris


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## suffolkian (Jul 25, 2007)

*Re: imports price up*

No I think it will fall to £ to 1.00 yes one for one !!! 
and then this government will take us into the euro, a nice little 30% devaluation for us and no say in it.[/quote]

Exactly my thoughts over the last couple of weeks

Ian


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## oldenstar (Nov 9, 2006)

Tec said


> Just been advised that my new european van ordered in september 07 from a UK dealer for a spring 08 delivery has been built and is ready to ship to the UK but the dealer is not prepared to pay for it until the euro improves against the pound


I find this amazing! The dealer has a contract with you and is saying that he is not prepared to honour it unless something happens which presumably is not mentioned in the contract.
At least my dealer had the courtesy (sense) to write to me explaining the Euro situation and offering to share the misery with both me and the manufacturer. Which we have now done, and I have the van.
Only you know how you feel about that particular van (is it the only possible choice for you) but I would be very inclined to cancel.
There is always another van-However I appreciate the time scale now comes into it.
Best of luck
Paul


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## DABurleigh (May 9, 2005)

ICDSUN said:


> [if they gave you a date/month remind them that if they miss that date they are in breach of contract


Chris,

I'll happily bet they are not :-(

Read this thread. There are others on the topic, too:
http://www.motorhomefacts.com/ftopicp-113143.html#113143

Dave


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## ICDSUN (Oct 10, 2006)

DABurleigh said:


> ICDSUN said:
> 
> 
> > [if they gave you a date/month remind them that if they miss that date they are in breach of contract
> ...


Dave

No doubt there are some clauses to cover this, but giving a verbal date also forms part of the contract, I just think it outrageous that the dealer is treating a customer like this.

Chris


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## Buzzer (Oct 21, 2007)

We placed our order for a 2008 model Burstner Salano, at the NEC Show in October. We have just been notified by our dealer that it is now built, and on Monday he had signed for the MH to shipped from Germany......hooray at last!  Hopefully we should have it by early May.

He (the dealer) said that he attended the NEC Show in February of this year, and that Burstner like many other continental manufacturers, have had to increase their prices due to the exchange rate of the Pound/Euro. He informed us that in our case the price including the fair amount of factory fitted extras we had fitted to the MH, would have increased by about £4,500. Me thinks that's quite a bit of extra dosh! Thankfully he explained that these increases would not effect us at all, as we will get ours at the price we agreed and signed for in October. 

Now just bring it on :lol:


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## strathspey (Oct 30, 2005)

I ordered a new Hymer in October. It is due to be delivered early in June. In a recent conversation with Hymer UK, I was told that, since I had placed my order so early, it would be delivered at the price agreed back then. 
That seems good practice to me.
Strathspey.


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## Pusser (May 9, 2005)

I think soon the Spanish and maybe the French will be over here to buy our motorcaravans from Swift and others as they will be cheaper than in their country soon.

I am hoping that the Spaniards come over and buy our houses too as UK will be the place for the bargains, cheap labour and better and more reliable contracts. Of course most Poles will move back to their own country where they can earn a better living and they don't require to remortgage to visit the dentist.

I only hope that Oxfam remembers us.  

I think that while it is admirable that Brownhills are swallowing the price increases, I suspect the quantity they buy at means they have more room and may even have bought their vans at a set price whatever. But as mentioned, when Brownhills do something right they deserve a mention just as they do when they do something wrong.


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## trek (May 1, 2005)

*currency fluctuations*

What grates me more than anything is that we had seriously considered buying a LHD direct from Germany and importing it ourselves

We decided against this because we didn't want to gamble on the exchange rate (had we ordered the van direct from Germany we would have heeded some advice from a friend and transfered our pounds into euros at the time of ordering to save any nasty currency fluctations)

Even though the van is now built (specifically to our requirements on chassis & van) it is sat in the factory yard and the dealer will not give me a delivery date they just said they will have to wait for the exchange rate to improve


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## ICDSUN (Oct 10, 2006)

*Re: currency fluctuations*



trek said:


> What grates me more than anything is that we had seriously considered buying a LHD direct from Germany and importing it ourselves
> 
> We decided against this because we didn't want to gamble on the exchange rate (had we ordered the van direct from Germany we would have heeded some advice from a friend and transfered our pounds into euros at the time of ordering to save any nasty currency fluctations)
> 
> Even though the van is now built (specifically to our requirements on chassis & van) it is sat in the factory yard and the dealer will not give me a delivery date they just said they will have to wait for the exchange rate to improve


Trek

Call the factory direct see what they say, they won't want it hanging around in their compound either, ask them if they have increased the price to the dealer.

Chris

Chris


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## 107088 (Sep 18, 2007)

I'd grasp your sales agreement in your hand and trot along to a citizens advice centre, you may even, (and I say may because I'm bound to be wrong,) qualify for legal aid, and see what they say, I'm fairly sure that if you have an agreement in Sterling then thats the price, regardless of what the euro is doing, the dealer should sort this out with the supplier. Interestingly I notice the dealer is merely passing on the increase from the maker, what about the delivery costs, have those increased too?
I wouldnt employ a solicitor, as his costs will be higher than the 600 squid. I wouldnt accept anything until I had taken advice on it.


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## trek (May 1, 2005)

*A Resolution- sort of*

A Resolution- sort of :-

I knew that there was a delivery cost to the dealer (obviously charged to me in the overall deal) of approx £1000 to collect the camper from Germany on the back of a lorry

So I offered to collect it !

Success the dealer agreed, so the delivery cost has gone towards the currency fluctuation and I have to pay to fly to Germany

This seemed a reasonable option to get hold of the van & we get a bit of travel adventure thrown in

Hire Car to get to Stansted
Hotel overnight in Stansted
2 tickets to fly to Nurenburg
2 train tickets 
diesel back (approx 800 miles)
Ferry
Travel Insurance
2 days leave from work

Still very dissappointed that it came to this, although relieved that we will soon have our new long awaited camper


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## trek (May 1, 2005)

PS the factory will be arranging to PDI the vehicle before I collect it & I am being sent the new number plates & tax disc in the post to take with me.


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## DABurleigh (May 9, 2005)

Pleased you have seen your way through this.

Check you are content with vehicle insurance arrangements from factory to Dover. You might find you have even more incentive than you thought to drive and manoeuvre VERY carefully .....

Dave


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## thieawin (Jun 7, 2006)

Dave

what difference will it make? I assume from his post he will be getting english plates and tax disc issued on the info given to him and so it will be GB registered, taxed and insured from day 1.

I agree if he is on temporary D plates that there may be an issue but the regulations now alow a UK insurer to cover that, not that many have woken up.


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## DABurleigh (May 9, 2005)

The difference it will make will be in obtaining comprehensive insurance for the importing leg.

Dave


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## trek (May 1, 2005)

yes I will have UK number plates and a current new tax disc to take over with me

(I have already got the registration number )

Cover note being sent from insurer to dealer to arrange car tax disc

So this should cover me ?


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## DABurleigh (May 9, 2005)

Possibly 

I suggest you read this thread, then preferably obtain in writing a letter (not a clerk's assurance over the phone) from your insurers that you ARE covered comprehensively from Germany, or, as a minimum, write to them recorded delivery to the effect this is your understanding and they should write back by return if not the case.

http://www.motorhomefacts.com/ftopicp-404964.html#404964

Dave


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## carol (May 9, 2005)

Having only yesterday afternoon got back from importing our Rapido, I have just read through this thread, most have already commented on it.

I did not see, WHO your dealer was, will you not name him, as I would have thought that the price he quoted at order last September was the price you needed to pay.... OK, so yes, I know why you went to get it yourself, and if you are back soon, safe driving.

We did order in Germany and we (through our own niaivety) did not forward buy the euros (at €1.48 on day we ordered) as we didn't know we could, so we did lose out on the exchange rate, but I hope to establish what the current UK price would be for ours today.... with the extras we had.

Safe travelling and I do hope you enjoy it.

Carol


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