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The U.S. dollar is currently the strongest that it has been in over a decade. As a result, its exchange rate is extremely favorable in comparison to the Euro, the Yen, the Korean Won, the Canadian dollar, and the Australian dollar. Obviously, that has not benefited the rest of the world, but in the United States, this has created incredible buying opportunities.
One benefit to U.S. consumers is that foreign-made vehicle brands are now more affordable than ever, meaning that buying them is currently a great idea. This is not to discredit American-made automobiles, but the fact is, if you’re in the market for a Nissan, Honda, Hyundai, Mercedes-Benz, BMW, or Audi, among others, now is a good time to purchase one.
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They’re Available in Greater Quantities
In the past, one of the issues that car dealerships in America had to face was that foreign-made cars were in a limited supply. The reason was that, when the dollar was weaker, foreign auto manufacturers, such as in Germany found it more profitable to devote greater supplies to Russia and China. Russia and China were both on the upswing and their consumers were demanding more vehicles than ever before.
Now, however, things have changed. The U.S. dollar has grown considerably stronger and the growth in both Russia and China has slowed immensely. In fact, while growth has stagnated in China, it has actually declined in Russia.
While the strong dollar is a big part of the increase in supplies to the U.S., the slowdown in growth in many parts of the world, particularly the emerging markets, is also a major factor.
There are Better Promotions and Sales Being Offered
Now that foreign auto makers are sending greater supplies to the United States, dealerships are offering more frequent promotions to attract consumers.
On one hand, foreign dealerships are offering sales as a way to ensure that they sell more vehicles in order to take advantage of the strong dollar and counteract the decrease in sales in Russia and China. In contrast, domestic dealerships are also offering more promotions in order to try and make sure that they’re able to compete with the foreign manufacturers. After all, with a strong dollar, domestic auto makers are losing out on the money with their exports.
How Consumers Benefit
Those looking to import cars in bulk can benefit, particularly car dealerships, while regular consumers can take advantage of the sales and promotions that are being offered in the face of a more competitive market.
There isn’t an advantage of actually importing the cars directly from abroad in most cases without going through a dealership in the United States though. Some auto manufacturers such as Porsche don’t price vehicles much differently in different markets, as they don’t want people trying to make an arbitrage profit.
Of course, if you have any international auto shipping needs, A-1 Auto Transport will be able to help. Contact us today for a free quote!