Brexit Motorhome Countdown

Brexit Motorhome Countdown Written on 29th August 2018!

The Brexit motorhome countdown as become a very touchy subject. As, you read this article, hopefully, Brexit will not yet have happened. How, is it really going to affect motorhome, campervan and RV sales? Well, the terms under which we may leave, still hang in the balance. But, the fact remains, the show is never over, until the fat lady sings! However, I think I hear her rehearsing! But, things right now are not yet decided. What are the Brexit motorhome countdown costs to date? Just how many sales have been postponed or put on hold? Anyone, returning from Europe, in the past 8 weeks, will tell you one thing. It is now very expensive, to take your motorhome holidays in Europe! Some. may say that the current exchange rate, only reflects the short term expectations of the markets. Really, that did not make our motorhome holiday, any cheaper!

But, what if the Euro really does strengthen? Brexit motorhome countdown in demand. Motorhomes are set to grow in demand, especially, in the UK. Well, that is the feedback. In Europe, the 2018 Caravan Salon, motorhome show in Dusseldorf, had record number of visitors!  So, how will we really see what Brexit holds, until it actually happens? Our opinion, is that we will have to wait for some time, to see the real effects, it is not going to be instant. There is too much at stake and we need to have actually left to know what unfolds. At which point, the real truths will unfold! A truth that to many will really begin to sink in! Sink being the operative word! A weak pound, has to be inevitable, you may see fluctuations. Now, UK motorhome hire, may look cheap, but for how long? What about motorhome finance? How is your motorhome insurance going to be affected? Just simple things, like the cost of a motorhome warranty may cost more. This whole Brexit  issues is well and truly out of hand!

Brexit Motorhome Countdown Updated on 29th April 2019

My how time flies when you are having fun! My simple observations, back in August 2018, really have had some issues. My concern being that we need the motorhome / leisure industry to work. There is no winners, in where we are today. Many motorhomes are creating huge interest, there is a demand for leisure and we need to understand the implications. I have yet to hear any motorhome manufacturers, comment on what Brexit means to them? This may well be, all down to not really knowing, how it is going to work out. The battle of the brands is well underway. Some good points, are there is more choice and some great motorhome to look at. For example, have you seen the value for money, McLouis Fusion range. An exclusive for Auto-Sleeper motorhomes. Yes, this is a real European / Great Britain success. Why?

  1. we have the French giant Trigano Group investing in the UK
  2. Trigano own the McLouis motorhomes and Auto-Sleeper motorhomes
  3. Trigano also own Marquis Leisure the UK’s largest retailer
  4. producing a motorhome range to provide a motorhome at a value for money
  5. at a great entry price
  6. with high specification that appeals to customers
  7. we have real winners, the UK customers
  8. helping the jobs at the motorhome dealerships selling and servicing them
  9. growing relationship and trade for the Italian McLouis Fusion workers
  10. everyone’s a winner.

Brexit Motorhome Countdown Updated on 29th April 2019

Looking at what customers are looking for, we answer emails, on all sorts of things. So, we believe that the customers are there, it is just a matter of finding them! There is all sorts of interesting comments, Brexit, is making some hold back, there will come a point for many where they say, lets get on with it! Buying a motorhome that is! They are past caring about Brexit!

Many know that with our aging population, they will need something more to do. Nothing fits better, than a motorhome. Just think about it. Why does it fit the retired person? Well, now as we age, some of our confidence slips, a little. With a motorhome this provides that security. Just pull over and put the kettle on! The stress buster, is there and whilst an initial investment is not cheap. It is better that money in the bank! Motorhome holidays, with no hotel bills! No planes or trains to catch! So, are we able to build on this? Let us hope so.

Brexit Motorhome Countdown The Mob

The Brexit motorhome countdown, no doubt, continues to hold a number of issues. There is, always going to be that line of World leaders, waiting in the wings, for those trade deals. (that is what the leave, mob, tells us). I call them a mob, because, that is what they remind me of. Mr Johnson, Gove and Farage, with violin cases under their arms. Yes, we all know who the gangsters Moll is; In my best Humphrey Bogart accent, “let’s leave sweetheart, before, they make being European illegal”! Let’s face it, there are many who want to buy British! We, do not want to all be seen in European made motorhomes. However, it is hard to see better than, a German, French, Italian, Dutch, Belguim or  Slovenian motorhome! Counting the job losses, is something that concerns a lot.

Brexit Motorhome Countdown Euro Conversion Rates

Yes, wwe will be back. There is an interesting analogy that springs to mind “the B Back Bus” a term for interested customers, who say they will be coming back, to buy one, but, never to return! They will all turn up together on a large coach / bus, that’s the legend! That campaign leave bus, clearly stated a huge saving per week, going to the NHS, did you believe that? So, are our motorhome customers in the UK, all on the B back bus? Why are so many people, being led to believe; “we will be in the land of milk and honey”? Will our leisure time be taxed? Will our motorhomes get cheaper? The answers may well be yes and no, to those questions! Or the other way round no and yes! The real question pre and post Brexit question, what price the pound, to the Euro? That determines a lot more that you think! Have you tried buying motorhome chassis in sterling? Just a reminder, who makes motorhome chassis, Peugeot, Citroen, Mercedes Benz, VW, Fiat, Ford, Renault? That Euro conversion rate, is going to cost us, no matter, which way you jump!

Pound Versus Euro

There is no doubt, that investors and traders, will reserve judgement, until after Brexit has happened. No need to rush in where angels fear to tread, is there? Sitting on the fence, to see where the UK economy actually lands. Will it be a hard or soft one? Who knows at this point of time? When you stand back and look at how the words “foreign manufacturers” has affected us all. This become very clear, the fact is, that we have fell for the cheap China syndrome imports. How did we choose to ignore this and consider ditching our European members. Yes, you hear it from many, that the Chinese have stolen our jobs. In fact, this could not be further from the truth, they have not. Here is why and how many made in China motorhomes, do you see out there? Because, the facts remain that British businesses and EU members of all kinds and backgrounds, have exported “your” jobs.  Moving plants, elsewhere to benefit from the lower production costs. Is it any wonder, that we have not that much skilled labour? No, we have no work for them to do in the UK! How is an exit and Brexit, going to get our production costs down? Let alone get our manufacturing efficiency up. How is Brexit going to assist, with all of those issues? In a nutshell, we seam to have failed to even acknowledge, that stagnant rates of pay, low paid. How workers, and zero hours contracts. All are the beginning of unrest. Is this going to escalate and cause more extreme problems. So, how do we break the cycle? Jobs need to improve in quality, security, and pay rates, things have to be shaped to meet products looking value for money.

Brexit Motorhome Countdown Vote Leave

Hey, I want a pair of those rose tinted glasses please, the logic of many, regarding Brexit, have them on, all the time. Just look on the label before you buy them! Surprise, surprise “made in China”!  Many of the brexit leave mob, think just because we import more than we sell, we shall get a good deal. Ask the question, how does the UK economy, in the real world function?  With approximately 80% services, hotels and catering take up a good proportion? Who stays in hotels? Tourists, with their strong Euro’s so, that will keep them busy! If we have the workforce to fill the demand gap? Apparently without European workers, we will and are becoming short of workers. We hear of all the trumpet blowing, how brilliant our financial services are. So, from the worst paid jobs, in the hotels and accommodation sectors, to the highest paid, in financial services. With not a lot in-between. So, I am a European coming to earn pounds, then take home and convert back to Euro’s, at a poor rate! No, I am a top banker, I am going to stay in dear old Blighty and earn some weak pounds! On both counts “pull the other leg it has got bells on it”!

Brexit Motorhome Countdown Vote Stay

Hardly worth a mention now, staying that is! As we keep listening, Brexit means Brexit! So, voting to stay to many may end up in leaving, in the UK that is. Now, that is concerning to say the least! A mass exodus of EU citizens, will leave us in many sectors, short of both skilled and none skilled workers! That is a fact not fiction! Look at the net migration figures, in the coming months. Now, that has to also reflect on UK motorhome manufacturers. Already, we see motorhome dealers, advertising endlessly for technicians, salespeople, cleaners apparently to no avail. So, that should be sending alarm bells ringing out there. There is no way that business will grow, without key people and an incentfied workplace!

Leisure Time An Answer?

Well step back a moment, is leisure time an answer? What is your average motorhome owner, going to be doing after Brexit? Will they be buying them on more innovative, motorhome finance packages? Who buys a new car theses days? No one is the answer or very few, apparently circa 95% RENT them! With a PCP (personal car plan). Something, that could well end in tears. Why, because, oversupply will in the end, hit residual values! That will then sort all those cheap rentals, as someone, will have to take the loss! So, where does that leave any motorhome procurement plans? Wide open to adopt a similar package? In fact, we wrote an article called “Battle of the Brands” recently. Two of the largest motorhome manufacturer groups, Hymer and Trigano Group, are about to hot up the UK motorhome market in 2019. Maybe, we have a number of clues, as to what is going on in the UK. With the ever increasing motorhome and campervan demand, now beginning to bite. We now have active motorhome rental businesses, growing quickly. That makes renting affordable, will ownership for a longer or shorter period enhance that? In the UK, We have / had a very large caravan industry, that is still in demand. But, for how much longer? Caravans, may be cheaper in comparison to a motorhome and appeal to a younger family buyer. However, is the motorhome, about to make a real fight of it, for that leisure spend? House prices high, thus, provides equity releases, that in turn provides funds, to buy a motorhomes. So, will motorhomes manufactured be up for that demand? High Euro less value? Weak pound great value, some of the issues would go away. Back to strong Euro and weak pound, yes you have gone full circle. However, only if you have the workforce! Where do you get the skill workforce from? Surprise, surprise the EU!

Motorhome Manufacturing UK

Is there a clear strategy here, for the UK motorhome manufacturer, to look at things and say lets do it? We urgently need a younger generation to understand, we cannot all be rock stars and professional footballers! How will you be able to buy house as a 20 to 30 year old today? Leisure is a great opportunity to go hand in hand, with the growth and tourism, providing some opportunities. If you look at the national statistics, apparently, the unemployment rate, is relatively low! So, how is that one going to be worked out? Especially, as a substantial number of migrant, seasonal and settled workers who are in work? Where are the jobs with real incomes, to pay bills and mortgages? Are we really a land of relative wealth? How comes our young generations, are unable to buy homes? Renting, is hardly the answer, as rents are high, and pay is generally low. There are exceptions, but, we seam to have a huge inequality compared to other developed economies. So, lets ask the leave mob, how exactly, is Brexit going to change that? Where are the jobs? Where is the investment and how will they be promoting the leisure world incentives to grow and employ people? No doubt, they will all be on the B Back Bus! When you switch your TV to spend 21 days in July, with “Le Tour De France”! Just seeing all those motorhomes following the largest sporting event. Does that not tell you something?

Motorhome Manufacturing Europe

Our motorhome manufacturing sector, is widely accepted as being small, in comparison with other EU countries. Where did we get that notion we are still great and going to put the great back into Britain? Motorhome manufacturing and incentives may well help! Well, wake up and smell the coffee, Since, well before, we joined the EEC, we have been in decline. Having, been notoriously reluctant to innovate and invest. Where are all these new products, who is going to invest in new manufacturing capacity? In the past and now the future, with the floating exchange rate, we will still need to import, as well as export, in order to benefit from economies of scale. Investment decisions, rely on present capital employed, and a word that is often forgotten “profit”. We know, we are in a capital intensified industry. You could say, at times motorhome manufacturers, are faced with making savings. On specifications, everyone wants all the bells and whistles, usually at no extra cost! Therefore, somewhere, between difficult and impossible is that task! There is no doubt that exchange rate fluctuates quickly. So, consider why with such wide risks, would you want to import at high Euro prices. The margins, are needed, but, there is a limit, to what may be passed on to the customer. Will Brexit change that? It could actually make a weak pound very attractive to a European buyer.

The Dreaded VAT 20%

So, let us leave the best till last, that VAT at 20%! Here we have a real conundrum, if you reduced the VAT on new motorhomes, then we have a steeping stone to success. Especially, if incentified to be environmental friendly. So, before your car manufactures and dealers, shout foul red card! We are looking at creating two things. One, build an infrastructure, to incentify tourists, to rent motorhomes in the UK, or come over in their motorhomes. Bringing with them their Euros and spending power! To, provide a boost to motorhome ownership and make them more affordable. This would then help UK motorhome manufacturers, to grow and provide jobs, training and skill development.

No VAT On Motorhomes

So, what is the downside? Well, there is another upside, as yet no downside, other than the Battle of the Brands. You will then have families taking motorhome holidays, in the great outdoors. How many places in the UK have you been to visit? What was the cost of that all in package abroad? How long did getting to and waiting at the airport, really cost? Motorhome rental makes sense, an adventure for the kids and a way to learn new skills in enjoying yourselves! Motorhome ownership, well why not, today take an average new motorhomes at £60K that now with no VAT sits at £48K. If you consider the knock on effects, it could be huge for many people. Helping in employment, developments and making investments a no brainer. We need something radical to shake up things. Otherwise, we will just see costs spiral and when you consider all the other implications. Yes, no matter if you are a leaver or a remainer, this does all become, very concerning now.

Brexit Countdown

How long do we have? Not a lot check the clock it is ticking! Just click our logo to see how long!

Brexit Motorhome Countdown

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