Capturing favorable US/CAD conversion

[Donna D.]

I can't worry about this money exchange stuff. I have enough stress in my life! As long as the exchange rate is par or less, I'll be fine with whatever happens. I'm looking at my build sheet as being US dollars. I know that kind of attitude may mean I lose money... and that can be substantial. But still, I refuse to turn myself into a pretzel to save based on the exchange rate for international dollars. Some may think I'm foolish. I've made my decision and it's mine to regret or not. YMMV.

[Ruthe]

Probably a good decision. We paid a couple months ahead and if we'd waited the exchange rate would have been even better than the one we got. But on the other hand it could have been worse. I don't have the stomach for the stock market either.

[gbaglo]

Financial gurus are predicting 85 to 88 cents for Canadian dollar at 2014 year end. It's all good for you Donna. Money left over for gas.

[Donna D.]

I'm expecting to spend... just throwing this number out... $33,000 on my 5er. Yeah a bunch of money. I spent less on my first house. It is what it is. If it's less, cool. More but that's my fault. I have a good relationship with my banker and she knows what my plans are. Those folks know more about what's going to happen than the general public (anybody heard about "insider" trading?) She's got my back. As I've said, as long as it doesn't cost me more than I'm expecting in US dollars.. I'm good with that. If I get a "reward." COOL, more money for fuel and site fees! But to me, it's not worth spending hours on the WWW to follow the money....

[Ruthe]

As the Canadian dollar goes down, U.S. made products that are used by Escape are going to cost Escape more in Canadian dollars which will ultimately push up the price of the trailers. But right now it's good to be paying in U.S. dollars.

[KarenH]

Here's a current article on the exchange rate: Canadian dollar headed to 85 cents US, TD says - Business - CBC News

That's a 15% swing since I bought my trailer...not peanuts by any means.

[Donna D.]

US/Canada down to 90 cents US as of 18 hours ago....

[cpaharley2008]

That 10% differential would pay for a delivery…..something to think about for those waiting.

[Jrn56]

Originally Posted by cpaharley2008

That 10% differential would pay for a delivery…..something to think about for those waiting.

Or it would help pay for a nice trip to the Canadian Rockies! We were able to save 5% last summer.

[John G.]

I saw it as a chance to add options. Custom fabric for my wife and aluminum wheels for me. The door for more options is closed now (without penalty). Otherwise I'd keep adding more options as the rates drop in my favor.

John

[Brian B-P]

A decrease in the value of the Canadian dollar relative to the U.S. dollar means a cost reduction to U.S. buyers... but only as long as the price (in Canadian dollars) stays the same. Substantial parts of the trailer (axle, appliances, etc) come from the U.S. and the same exchange rate change causes them to cost ETI more, so in the long term the price has to go up.

U.S. residents may want to take advantage of what is to some extent a temporary condition.

[bisonbill]

Originally Posted by KarenH

Here's a current article on the exchange rate: Canadian dollar headed to 85 cents US, TD says - Business - CBC News

That's a 15% swing since I bought my trailer...not peanuts by any means.

I wish we could actually get the rate the TD bank economist is talking about. I've been tracking the USDCAD rates for the last month or so, and on this past Monday, the rate in the Wall Street Journal and on Yahoo Finance was just 89.77 cents. The headlines called it a four year low.

So I decided it was time and went down to my local bank, which happens to be TD Bank, to get a Canadian check, figuring I'd get something near a 10% discount on the money.

I forgot about the bank fees. Banks make a fortune in currency exchange. The best rate the bank had was 94.67 cents. So I got a 5% currency discount but end up paying the bank almost a 5% fee (or 5% more than the rates shown online) to buy Canadian currency.

A little more research indicated the 89 cent (going to 85 cent) rates from the internet are only for the big time companies with their own trading operations. If you have to use a bank, there is about a 5% fee on either side.

If you want to get an estimate of what its actually going to cost to change US in Canadian, Bank of America has a calculator on their website ( https://www.bankofamerica.com/foreig...y-converter.go )

As of this morning, if you want to buy Canadian currency (perhaps to pay for your trailer), the price is about 94 cents. If you want to sell Canadian currency, the price is about 84 cents. Yahoo says the USDCAD relationship is at 89 cents. I should have been a bank.

On the bright side, the temp is over freezing today, My 21 went into production this week, it'll be done in March, and we're scheduled for an orientation on April 23.

[JaneM.]

I don't believe Escape charges a fee if you simply send them a US bank check and our Credit Union doesn't charge a fee for issuing a bank check. You may wish to check with Tammy or Kim to confirm, but it would save you a bundle in fees.

[cpaharley2008]

ETI does not charge any fee in processing your payment but the amount of the exchange rate is variable based upon their bank. Just remember to put double postage for mail to canada from us.

[JaneM.]

I didn't think so. We've been making some payments this way and have received exchange rates that seem fair - slightly less than what the internet states the rate is, but no fees so for us it's working well.

[techfan]

There was rather a lengthly discussion of rates and fees a year ago when we bought our Escape. It was more critical then because the balance was to the Canadian dollar. After considerable research, I found that ETI (Tammy) generates some of the most favorable exchange rates because of the volume of business they do. As I concluded and stated a year ago, follow Tammy's instructions and you will get the best rate available. Again, if I remember correctly, stage your money in the US bank that Tammy lists and then you can have her move money when you instruct. All that being said… if I were buying now I'd be extremely happy because our trailer would have been over $2,000 less than last year this time.

[gbaglo]

You can save even more money by making the trip to Chilliwack. Your American dollar goes further here, so it only makes sense to spend more.

[Rossue]

Chase Explorer Visa has no foreign exchange fees and you'll get 30,000 United Miles. No annual fee for first year.

[Brian B-P]

Originally Posted by Rossue

Chase Explorer Visa has no foreign exchange fees and you'll get 30,000 United Miles. No annual fee for first year.

Kidding, right?

Visa - or any other credit card company - would charge Escape Trailer Industries at least a couple percent (any maybe much more) of the transaction amount... several hundred to a couple thousand dollars. This is the reason no one accepts credit card payment for big-ticket items that don't have obscene mark-up built into the price. I have heard of people paying for cars with credit cards, but the cost of that was considered by the dealer in the negotiated price.

[gbaglo]

The credit card companies actually charge the retailer even more than two per cent on "Premium" cards. Nothing in life is free.