Lock-in date for exchange rate?

[frank_a]

When does the exchange rate lock in when you buy an Escape? When you send your $2,000 in? (Is that still the down payment?)

I'm positive this has been discussed before, but I am not good at searching stuff.

We're still not sure what way to go for a new trailer, but it seems to me the U.S. dollar was worth more against the Canadian dollar when we first started looking. That exchange rate will have an impact on our decision making.

Thanks!

Frank

[kstock11]

The exchange rate is never Locked in. The rate is only set as you send payments. Many pay early if that feel the rate is best early or pay later if they expect it to improve. It’s a crap shoot!

[davidmurphy02]

There is no "lock in" of the exchange rate, the exchange rate you pay will be what is in effect at the time of each payment. If you send a check to ETI you'll get the exchange rate in effect when their bank receives it. Banks charge varying fees for changing $USD into $CAD - you should check into this so you don't get surprised with hundreds of dollars in fees that you weren't expecting. I found that the exchange rate and fee with ETI's bank was better than through my own US bank so I just sent them a check. There are a number of online companies like TransferWise which specialize in transferring funds between countries and offer lower fees, you can find plenty about that on other threads on this forum.

Over the past six months as we got ready to order I watched the exchange rate fluctuate but it ultimately has stayed in a fairly consistent range - once touching on .75, once getting close to .80, but generally around where it is right now. There are ways to open an account and convert USD into CAD which can be used at a later date to pay ETI if you feel that rates are low and want to lock them in. I decided to just send a substantial payment to ETI after we placed our order in case exchange rates started heading back up.

There are many different options and opinions on dealing with the exchange rate. At the end of the day, years down the road you will be enjoying your trailer and probably won't remember or care what exchange rate you paid.

[frank_a]

Originally Posted by kstock11

The exchange rate is never Locked in. The rate is only set as you send payments. Many pay early if that feel the rate is best early or pay later if they expect it to improve. It’s a crap shoot!

Kevin,

As my Scot grandmother would have said "Och!"

Frank

[frank_a]

Originally Posted by davidmurphy02

There is no "lock in" of the exchange rate, the exchange rate you pay will be what is in effect at the time of each payment. If you send a check to ETI you'll get the exchange rate in effect when their bank receives it. Banks charge varying fees for changing $USD into $CAD - you should check into this so you don't get surprised with hundreds of dollars in fees that you weren't expecting. I found that the exchange rate and fee with ETI's bank was better than through my own US bank so I just sent them a check. There are a number of online companies like TransferWise which specialize in transferring funds between countries and offer lower fees, you can find plenty about that on other threads on this forum.

Over the past six months as we got ready to order I watched the exchange rate fluctuate but it ultimately has stayed in a fairly consistent range - once touching on .75, once getting close to .80, but generally around where it is right now. There are ways to open an account and convert USD into CAD which can be used at a later date to pay ETI if you feel that rates are low and want to lock them in. I decided to just send a substantial payment to ETI after we placed our order in case exchange rates started heading back up.

There are many different options and opinions on dealing with the exchange rate. At the end of the day, years down the road you will be enjoying your trailer and probably won't remember or care what exchange rate you paid.

Excellent advice, thanks David.

I agree years down the road the exchange rate I paid won't make a difference, but it sure does today. It's a job convincing my wife to go this route, even after owning a smaller egg. On top of that, the only Escape that would work for both of us is the 5.0TA...

Frank

[rbryan4]

Frank, like David I just sent Escape a check. Their bank's exchange fee was not bad at all.

The exchange rate between the CAD and the USD has been pretty stable of late, staying around .77. You could send the bulk of your payment early, and hope the rate doesn't drop, or wait and hope it does. Either way is sort of a crap shoot.

Whatever your rate turns out to be, remember the bargain you're getting because the dollar is strong right now.

[escape artist]

Originally Posted by frank_a

When does the exchange rate lock in when you buy an Escape? When you send your $2,000 in? (Is that still the down payment?)

I'm positive this has been discussed before, but I am not good at searching stuff.

We're still not sure what way to go for a new trailer, but it seems to me the U.S. dollar was worth more against the Canadian dollar when we first started looking. That exchange rate will have an impact on our decision making.

Thanks!

Frank

Hi: frank_a... The only "Lock in" that I know of is the price of the trailer. That happens at receipt of a deposit. If you send various payments over the build time then you will, in effect, have a blended exchange rate. Some up some down as the economies of the two countries flux.
We as Canadians have to "Pay the piper" in Canadian $$$'s!!!
Looking forward to meeting you at Niagara Wine Escape. Alf
escape artist N.S. of Lake Erie

[Hilola]

Originally Posted by escape artist

The only "Lock in" that If you send various payments over the build time then you will, in effect, have a blended exchange rate. Some up some down as the economies of the two countries flux.

Also known as "dollar cost averaging."

[escape artist]

Originally Posted by Hilola

Also known as "dollar cost averaging."

Hi: Hilola... Yepper!!! I did a lot of that in the '80's when our mortgage rates peaked around 20%. I called it "Rate of survival". Renewing every 6 months for the lowest rate as they toppled. Lucky we didn't lose our house. Alf
escape artist N.S. of Lake Erie

[Hilola]

Originally Posted by escape artist

Hi: Hilola... Yepper!!! I did a lot of that in the '80's when our mortgage rates peaked around 20%. I called it "Rate of survival". Renewing every 6 months for the lowest rate as they toppled. Lucky we didn't lose our house. Alf
escape artist N.S. of Lake Erie

I remember those days, Alf! Definitely not the "good 'ole days," especially considering that my current mortqage is financed at 2.75%. Planning on getting it completely paid off within two years, then it's time to travel!

[cpaharley2008]

But we fail to remember when we were paying 18% on out mortgage we were also getting 12% on our savings. Nowadays with 3% mortgages, we get -0- on our savings, another reason to spend it on a new Escape.

[Upfisk]

I think there is some confusion here. When you turn in your build sheet, you lock in your price. For instance, we wanted high lift axles, about a week before we were done with our build sheet the cost of the axles increased by $50 CAN. Had we turned in our final sheets we would have locked in the lower price. So, get the build sheet completed fast, and lock in your $CAN price. Then, worry about the exchange rate.

[padlin]

Originally Posted by cpaharley2008

But we fail to remember when we were paying 18% on out mortgage we were also getting 12% on our savings. Nowadays with 3% mortgages, we get -0- on our savings, another reason to spend it on a new Escape.

And 7% cost of living raises.

[algonquin50]

It locks in when you write the final check. The rate is often in our (US) favour in winter. I paid for my 5.0TA in Feb and it wasn't ready until May...but I saved quite a bit ($5-6k). Be aware that we paid extra for international overnight, but it took 3 or 4 days to arrive at Escape.

[algonquin50]

That was not how it worked in 2017. I don't think Escape would give you a rate on money that they don't have.

[Donna D.]

Originally Posted by algonquin50

That was not how it worked in 2017. I don't think Escape would give you a rate on money that they don't have.

As far as I know, it still doesn't work that way. Rate is the day/date ETI receives the funds. Not when you decide to send it or write the check.

[cpaharley2008]

I think he is saying the same thing, the rate is locked once you make the final payment and Escape applies it to your account, then anything subsequent to that date has no impact on what you have already paid.

[Perry Butler]

Originally Posted by cpaharley2008

I think he is saying the same thing, the rate is locked once you make the final payment and Escape applies it to your account, then anything subsequent to that date has no impact on what you have already paid.

Exactly! That's how it worked with ours last October.

Enjoy,

Perry

[algonquin50]

Originally Posted by Perryb67

Exactly! That's how it worked with ours last October.

Enjoy,

Perry

To be clear...I was replying to a post which seemed to indicate that they had locked in the rate for which they would pay for their trailer. Your Build Sheet has nothing to do with currency exchange. ETI will charge you the going rate when they have the full amount in hand. You would only save money on anything you add to the trailer if you paid in full before the price increase. And, yes, a 3 or 4 day transfer time could have, and did, impact our final price. I had to pay $50 when I picked up the trailer......I was just irritated that I paid a premium for international overnight and it didn't get there on time. whine, whine, whine

[Donna D.]

Originally Posted by algonquin50

ETI will charge you the going rate when they have the full amount in hand.

No, not if you pay in installments. Each installment may have a different rate depending on the day/date ETI receives the funds.