UK: Fall in sterling versus euro thumps imports - Internet retailer
A dramatic fall in the value of sterling has taken the shine off some of the savings on offer from Europe, according to UK-based Internet retailer, BroomBroom.com.
On Tuesday 25th February, sterling hit a six month low against the euro of 1.458 - over 8% lower than its peak on September 13 of 1.59.
As a result of the less favourable exchange rate, the retailer says that the switch away from imports means it is selling more UK supplied vehicles than in-stock imports for the first time since its launch in 1998.
"Combined with the swathe of pre-registrations and heavily discounted models sloshing around the market, the weak pound has shifted the balance of appeal to UK sourced models at the moment," said Ashley Manek of BroomBroom.com. "The current conditions mean we're able to negotiate similarly sized discounts over here as the Continent."
With sterling likely to remain subdued, BroomBroom expects to source the bulk of its cars from the UK until at least the summer.
Manek did however, stress that the import advantage is far from dead. "The current weakness of sterling has merely accentuated that prices are far from stable, but the disparity with Europe is still visible with certain makes and models."
For example, BroomBroom.com says it is able to deliver a 15.7% saving on an imported VW Golf 1.9 TD PDI SE 5dr Auto, whilst the saving they offer on a UK supplied version is closer to 7%.