Would the declining US dollar effect new and used car prices ?
I would suspect there would be some lag time before prices went up, but the US dollar has been declining (or correcting, as some say) against the Euro for over 6 months.
Would this make the cost of, lets say, a new 2004 Mercedes increase ?
And would it increase the value of a used Mercedes ?
Yes, that's been the objective for years. There is a policy to keep the dollar weak to help limit the trade deficiet. By keeping imports expensive, compared to domestic products, more manufacturing jobs in the US, and decreasing imports. Also, American products over seas will be cheaper and more readily purchased, so there forign nations will purchase more American Made products, thereby increasing exports.
So, if less Mercedes are imported, it also makes the remaining used ones more valuble since they will become scarcer over time, and used ones will be the only way for some people to afford buying a Mercedes.
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