Date:         Thu, 28 Feb 2002 08:04:00 -0500
Reply-To:     The Bus Depot <vanagon@BUSDEPOT.COM>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         The Bus Depot <vanagon@BUSDEPOT.COM>
Subject:      Re: Eurovan question-Parts Prices vrs Vanagon
In-Reply-To:  <20020228015736.55011.qmail@web21108.mail.yahoo.com>
Content-Type: text/plain; charset="us-ascii"

> I hear people say the vast quantity of Vanagons and
> older vans built will insure parts availability and
> cheapness for many decades.  Since they no longer make
> the vanagons in Mexico   [Comment: never did.]
> is that situation likely to change?  If not I'd say the vanagons
>  will always be cheaper to repair than the Eurovans


Supposedly VW is now doing Eurovan assembly in Brazil.  Which does mean
that, theoretically, some Eurovan parts prices could go down as parts from
Brazil hit the market.

However, there's still a problem: lack of demand for the parts in the U.S.
No matter what the price of parts, there is such limited demand for them in
the U.S. that it precludes the high-volume purchases that would be
neccessary for the best wholesale deals. I could buy 200 water pumps for
Vanagons if the price were right, because I know I'd sell them.  But if
someone offered me an incredible deal on 200 Eurovan water pumps, I'd have
to pass because I'd be up to my ears in water pumps forever.   So the best
deals, if they happen at all, will probably go to Europe, where there is
more sales potential because the Eurovan is more successful.  At that point,
they'll filter back to the U.S. via importing distributors like me, but at
slightly higher prices.  For example, rather than to buy 200 water pumps at
60% off, I might buy a more workable quantity like ten at 40% off from
someone who bought the 200.

So, limits on demand are likely to prevent Eurovan parts prices from ever
dropping to Vanagon levels here in the U.S.  But at least some prices may
drop nonetheless, if and when the Brazilian situation has an impact.

- Ron Salmon
  The Bus Depot, Inc.
  (215) 234-VWVW
  www.busdepot.com

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