Exchange rate is rapidly climbing

Pro:
I got a 9% "raise" in US$ on my quoted UK salary.

Con:
My savings are becoming less adequate by the day, for example, the price range of the kind of car I was hoping to buy has gone up US$1000 since the middle of May when I first started looking on UK Autotrader.

When I first started this process at the beginning of May I believe the exchange rate was US$1.51 to 1 gbp, it is now at US$1.66 to 1gbp. How soon do you reckon before it gets back to the traditional US$2 to 1gbp?

I need to hurry up and get over there.

Hopefully just before I go to California in November

How soon do you reckon before it gets back to the traditional US$2 to 1gbp?

I don't pretend to have memorised all the fluctuations of the exchange rate over the years, but every time I travelled to the UK in the last 10 years, except for last spring, the exchange rate was closer to what it is today, roughly 1.6 dollars to the pound.  I think that in terms of value-for-money, that rate is about right.  2 dollars to the pound is outrageous.  

Unless you're getting paid in pounds but spend primarily in dollars, I'm not seeing how this is gonna be much of a benefit to you once you're over here.

It's not like the UK prices have taken a 9% tumble in the meantime.

I don't pretend to have memorised all the fluctuations of the exchange rate over the years, but every time I travelled to the UK in the last 10 years, except for last spring, the exchange rate was closer to what it is today, roughly 1.6 dollars to the pound.  I think that in terms of value-for-money, that rate is about right.  2 dollars to the pound is outrageous.  

Well..some people have a strange understanding of "traditional." Maybe what some of us would understand as "wistful thinking."

Unless you're getting paid in pounds but spend primarily in dollars, I'm not seeing how this is gonna be much of a benefit to you once you're over here.

It's not like the UK prices have taken a 9% tumble in the meantime.

Well I still have bills to take of back in the States, so yes, I will be spending in dollars.

Well..some people have a strange understanding of "traditional." Maybe what some of us would understand as "wistful thinking."

http://finance.yahoo.com/echarts?s=GBPUSD=X#symbol=GBPUSD=X;range=5y

Looking at the 5 year graph in the above link, the pound was at 1.80 or better except for a swoon in 2005-2006 when it fell no lower than 1.70. Andi since July 2006 until the recession started July 2008 the pound has been roughly $2 to 1.

That's not wistful thinking, thats fact.

I've been coming here since 1995, and the exchange rate for the longest time was around $1.45. On the other hand, I remember being told in school (this would be in the 1970s) that a pound was around $2.50.

I was really sweating it last year when it was stuck around $2. I've lucked out the last few times I've transferred money in and it's been nice and low. I'm going to sit on the rest of my US money for as long as I can now.

Heya!

Yep, 'Traditonally' at least in the last 15 years or so I've been actively looking at the UK/USA/Canada currency listings - the £ Vs USD has pretty much been around the £1 = $1.55-$1.63 sort of range. Sometimes a little over or below of course but around there.

The £1 = $2 USD figures occured very recently and after I think it was a 25 year gap?

I know you're looking at cars Chadwyck, look at the usual places of course, Autotrader mainly...    but take a look at some of the specific BMW forums in the cars for sale section - sometimes you get some fantastic cars there which have been well looked after etc.

Cheers! DtM! West London & Slough UK!

Heya!

Yep, 'Traditonally' at least in the last 15 years or so I've been actively looking at the UK/USA/Canada currency listings - the £ Vs USD has pretty much been around the £1 = $1.55-$1.63 sort of range. Sometimes a little over or below of course but around there.

The £1 = $2 USD figures occured very recently and after I think it was a 25 year gap?

I know you're looking at cars Chadwyck, look at the usual places of course, Autotrader mainly...    but take a look at some of the specific BMW forums in the cars for sale section - sometimes you get some fantastic cars there which have been well looked after etc.

Cheers! DtM! West London & Slough UK!

I just know that after you factor in the upcharge for actually buying the pound it was always safer to calculate it at 2 to 1, that way despite market fluctuations you were covered, better to walk in with US$100 expecting to walk out with 50gbp and instead walk out with 61gbp.

As much as you have championed the 320d, it will be the first casualty of this exchange rate situation. I am looking more at the Honda Accord now, as there are several examples that are 1000gbp cheaper than a comparable 320d, since this won't be my forever car I willing to scarifice driving dynamics for savings and I would imagine a Honda is cheaper to repair than a BMW (it's true in US, may be different in UK).

But the 320d is on the list DtM, it's on the list, high on the list!

Hi Chadwyck!

The Honda Accord 2.2 Diesels are quite a strong performer actually, plus they look quite good for a Japanese design!

Honda's dont have many discount parts and service specialists - they are around, but not very many. Traditonally, Honda's have been the most pricey of the Japanese marques for servicing and parts. However, don't let that put you off too much, I'd say 'it'd be comparable give or take a bit, to run a Honda and BMW low/mid level car from discount parts retailers' - sometimes the part that goes wrong is a main dealer part only so you have to stump up the cash. Sometimes the discounters can't get the particular part in at a good enough discount etc etc.

And Don't forget! you know who to message when you want your car's software re-mapped to provide better driveability, better MPG and a usual 30 BHP power increase!

Cheers! DtM! West London & Slough UK!

Dennis,

I've had my US built Accord 24 months and have put on 36,000 miles and I've had it in the shop too many times.

As the saying goes "They don't make them like they use to". I bought my first Honda around 1973 if I remember correctly.

FYI.

Jim,

Sounds like you might have bought a lemon - might be worthwhile speaking to a legal person to see if you can have any recourse for the car not being 'fit for purpose'

Honda's nowadays do have a good reputation for reliability

That said.   i'd STILL only buy a Honda NSX!

Cheers! DtM! West London & Slough UK!

Jim,

Sounds like you might have bought a lemon - might be worthwhile speaking to a legal person to see if you can have any recourse for the car not being 'fit for purpose'

Honda's nowadays do have a good reputation for reliability

That said.   I'd STILL only buy a Honda NSX!

Cheers! DtM! West London & Slough UK!

The truth be known...........
The first problem was with the passengers window. It is a power window and it wasn't working correctly. Took it in and they said we wont fix it because on the tint film on the window was too thick and this was not done by them. I was a little bit dejected and I had to take it back to were I bought it (100 miles away) and they fixed it at no charge but I had to pay for a rental car while the car was being fixed.
When I took the car in for oil changes I told them there was a loss of power steering fluid and they checked on three occasions and said everything checked OK. Immediately after the end of the warrentee I had the car in for another oil change and the mechanic said he noticed my power steering unit was bad and had to be replaced. WTH. Fortunately they had records and they talked to Honda and they agreed to fix it without cost even though it was off warrentee.  They also said my rear brake pads needed to be replaced. I protested that because on my Lincoln I had gone 100,000 miles before replacing the brakes. They said that they wear out faster now because they don't use asbestos anymore. 36,000 miles for brakes may be the norm in the UK? It cost $180 for the rear brakes. So I am waiting for the lease to run out in July next year and then I'm thinking of switching to a KIA or Hyundai. Both Korean.
This is the fourth Honda I have owned but I think the ones that are made in Japan are better made. This one was made in the US and the previous Honda was made in Canada.
Before that I had a new Mercedes and I had my share of problems with that.
I seem to have good luck with American cars so I may go that route next time.
Cheers,
JiM

Hopefully just before I go to California in November

Haha... sub Texas for California, and this was my comment exactly! 

But yeah, it does suck for those on the other side coming over here for a visit. Exchange your dollars now if you can!