Very low Canadian Currency hurting import

[JMK]

I've heard the following today from our colleague in Japan:

Normally the auctions sell 75% of the days vehicles but last week it was more like 25% sold. Once the prices come down here and the prices increase overseas which they will do once overseas dealers start running out of stock as no one is buying at the moment for importing...... every thing will smooth out.

So do you see the dynamics of what is happening here? If overseas buyers were to drop out of the auctions in Japan, then the Delica would sell at the current Japanese domestic market price of about 100,000 Yen. Over the next 3-6 months the prices will go down at auction in Japan, and they will come up here. Then, when they reach an equilibrium, they will stabilize.

And one last quote from Japan:

The problem with the Canada market is that good clean 15yr vehicles are still hard to find and we are all still going to pay above normal to secure. The rough vehicles.... yes they will come down but the others will still command a price.

So my interpretation: If you want a nice Delica, you will never again see one below the 5 figure mark no matter how you decide to do your sourcing.

[jrman]

JMK - thank you, my point exactly.....the market will determine the final price and exchange rate fluctuations is only one factor in the equation....equilibrium will be reached and it may or may not result in a price increase to the consumer.

[JMK]

The thought just occurred to me: parts. They generally aren't bought at auction so the same dynamics will not be affecting them to the same degree. So it seems to me that new OEM parts are less likely to have a 'correction' like the vehicles sold at auction will. We're probably looking at a long term price rise for OEM parts sourced in Japan in the order of 30%. I'm glad that a good number of the parts we require are also available by cross matching parts available here.