August 5, 2010
IMPORTANT MESSAGE FOR FOREIGN BUYERS
As most Nordhavn aficionados know, Pacific Asian Enterprises (PAE), the producer of Nordhavns, is based in Dana Point California and is a California corporation. Thus we quote pricing and typically write purchase contracts in US dollars.
However, with offices in Hamble, England and Brisbane, Australia, together with the international outreach of our four offices in the US, many of our sales are to non-US citizen Buyers. Over the last three years, about 40% of our Nordhavn sales have been to non-US citizens including Buyers from Australia , New Zealand, Canada, Russia, South Africa, Norway, France, Belgium, Turkey, New Caledonia, Germany, Slovenia, Italy, Spain and Mexico .
This posting is an appeal to Buyers from those countries and others who are holding Euros, GB pounds, Canadian $, Australian $ or New Zealand $. In recent days, those currencies have strengthened against USD- in some cases by 10% or more. Simply said, since PAE conducts its business in USD, if your currency has become stronger, it will take less of it to buy a Nordhavn today than it would have one month ago.
Please see the latest Forex report from Bank of America. This is admittedly a boring document, but it is filled with important information. We have used this weekly BOA Forex report for many years here at PAE and while it is not perfect, we have found it to be accurate. Of course unforeseen world events will trump the predications, but many smart successful people around the world use this report to make plans and decisions. As you can see in the report, every currency mentioned above is predicted to weaken relative to the USD in the coming months.
You might ask how this situation can help you in the purchase of a new boat knowing that the delivery time and payment schedule stretches 10-20 months into the future (depending on the model). While this favorable exchange rate dynamic exists, PAE is willing to sell a new Nordhavn with the contract written in any of the currencies mentioned above- using today’s favorable exchange rate.
How can PAE do that? Upon signing of a Nordhavn purchase contract in a currency other than USD, we immediately then “protect” the exchange rate by buying a Forex forward contract. Done correctly, it adds little or no cost to the transaction- and as your currency weakens in the months ahead the value of your purchase contract goes up!
If you are a candidate to take advantage of this ripe moment, please contact your salesman to begin a dialog. Yes, there is still quite a bit of uncertainty out there in the market and some people still feel that it is prudent to “hold.” However, that very dynamic is what makes it a Buyer’s market. There are many good reasons to buy a new Nordhavn right now. The prices are right, the various models are developed to near perfection, and the delivery times are short. And now we have the exchange rate advantage which can add a 10%-20% tailwind of savings for foreign buyers.
The moment is perfect to purchase your dream Nordhavn.