|
10-19-2017, 05:33 PM
|
#1
|
Senior Member
Join Date: Jul 2017
Location: Seattle, Washington
Trailer: 2017 17A
Posts: 101
|
Exchange Rate - help
Got a quick question... Escape received funds from me yesterday (10/18) for a trailer that I am picking up in early November. All of the exchanges that I can see tell me that yesterday's rate closed at $1.246. Escape is telling me that they are giving me $1.225 , and that I am looking at the stock exchange rate. I'm looking at FX rates and have no idea where they are coming up with $1.22.... That is a big discrepancy- any thoughts?
Thanks!
|
|
|
10-19-2017, 05:38 PM
|
#2
|
Senior Member
Join Date: Sep 2016
Location: Milpitas, California
Trailer: 2017 19'
Posts: 347
|
Their bank gave them the rate, they don't get to "set the rate".. foreign currency exchange is like this.. the only way you can be sure the exchange rate is what you intended to be, is to do the exchange yourself and wire them Canadian funds.
|
|
|
10-19-2017, 05:38 PM
|
#3
|
Senior Member
Join Date: Oct 2008
Location: North Vancouver, British Columbia
Trailer: 2009 Escape 17B 2020 Toyota Highlander XLE
Posts: 17,136
|
They get what they get at their bank.
You can use web numbers as a reference, but not as an absolute.
__________________
What happens to the hole when the cheese is gone?
- Bertolt Brecht
|
|
|
10-19-2017, 05:40 PM
|
#4
|
Senior Member
Join Date: Jul 2017
Location: Seattle, Washington
Trailer: 2017 17A
Posts: 101
|
Got it- thanks. I probably should have looked into getting the money exchanged myself for that type of variance.
|
|
|
10-19-2017, 05:45 PM
|
#5
|
Senior Member
Join Date: Oct 2015
Location: Lansing, Michigan
Trailer: 2017 Escape 21, 2016 GMC Canyon Duramax
Posts: 587
|
ETI directed me to vancity.com for current rates. Click on Rates and then foreign currency. You will see the spread on the buy and sell costs for USD. If you are buying USD the rate is 1.27. If you are selling USD, which you are doing, the rate is 1.22.
|
|
|
10-19-2017, 05:48 PM
|
#6
|
Senior Member
Join Date: Nov 2010
Location: Denison, Texas
Trailer: 2015 21'; 2011 19' sold; 4Runner; ph ninezero3 327-27ninefour
Posts: 5,136
|
I would not make the assumption that if taking care of it some other way, one would get better rates. You can also get worse rates.
__________________
Cathy. Floating Cloud
"Live in the sunshine, swim the sea, drink the wild air.... "
Emerson
|
|
|
10-19-2017, 07:42 PM
|
#7
|
Senior Member
Join Date: Jun 2010
Location: Central, Pennsylvania
Trailer: Escape#5 2022 E19
Posts: 26,268
|
So, how much did that $.02 variance cost you? In the grand scheme of things you will recapture it later if you ever sell the trailer.
__________________
Jim
Sometime life gets in the way of living.......
|
|
|
10-19-2017, 08:02 PM
|
#8
|
Senior Member
Join Date: Dec 2013
Location: Westcliffe, Colorado
Trailer: 2010 EggCamper (#083); 2017 Escape 21 (#053); 2016 F-150 5.0L FX4
Posts: 1,765
|
Not sure how much Dave was transferring, but if I calculated it right, 2 cents on the dollar difference over $25,000 is $500 difference. That sounds like real money, to me....
|
|
|
10-19-2017, 08:14 PM
|
#9
|
Senior Member
Join Date: Oct 2009
Location: Galesville, Wisconsin
Trailer: 2017 21 "Blue II" & 2017 Highlander XLE (previously 2010 17B "Blue" & 2008 Tacoma)
Posts: 4,232
|
Like Glenn said, Escape has no control over the exchange rate, their bank does. That is why there have been several thread about the various methods many of us used to get better rates.
__________________
Eric (and Mary who is in no way responsible for anything stupid I post)
"Beware of false knowledge; it is more dangerous than ignorance." George Bernard Shaw
|
|
|
10-19-2017, 08:56 PM
|
#10
|
Senior Member
Join Date: Nov 2010
Location: Denison, Texas
Trailer: 2015 21'; 2011 19' sold; 4Runner; ph ninezero3 327-27ninefour
Posts: 5,136
|
Did anyone who opened special accounts look at what they saved over what Escape was using on the days around when they paid? Do you know what you saved?
__________________
Cathy. Floating Cloud
"Live in the sunshine, swim the sea, drink the wild air.... "
Emerson
|
|
|
10-19-2017, 09:35 PM
|
#11
|
Senior Member
Join Date: Dec 2012
Location: Edmonton, Alberta
Trailer: 1979 Boler B1700
Posts: 14,935
|
Quote:
Originally Posted by davedru
All of the exchanges that I can see tell me that yesterday's rate closed at $1.246. Escape is telling me that they are giving me $1.225 , and that I am looking at the stock exchange rate. I'm looking at FX rates and have no idea where they are coming up with $1.22....
|
Quote:
Originally Posted by stephen99
ETI directed me to vancity.com for current rates. Click on Rates and then foreign currency. You will see the spread on the buy and sell costs for USD. If you are buying USD the rate is 1.27. If you are selling USD, which you are doing, the rate is 1.22.
|
The rate Dave found was essentially the same as OandA lists for October 18th (1.2494). Notice that this is midway between the buy and sell rates from VanCity, because that's how this works: the bank's income comes from the margin between the rates (plus any other fees).
The rate from the exchange website (of 1.2494) is described by OandA as an "interbank" rate, and advises:
Quote:
Choose a percentage from the interbank rate list to better approximate the tourist exchange rates actually charged by your financial institution.
|
They further explain:
Quote:
Interbank rates (+/- 0%), with a margin close to zero, are the "official" rates quoted in media such as The Wall Street Journal. They typically reflect the market rates for large transactions of US $1 million or more when banks trade between themselves or with their very large clients.
For the smaller amounts exchanged in a retail setting, banks, credit cards and exchange agencies charge commissions to convert currencies. These retail rates add commissions of 1 to 10 percent or more.
|
The purchase of an Escape is not a million-dollar transaction, and neither Escape nor the buyer is a bank or a very large client. In this case, a 2% to 3% margin seems pretty reasonable to me.
|
|
|
10-20-2017, 08:57 AM
|
#12
|
Senior Member
Join Date: Jul 2017
Posts: 343
|
That's how banks make money on the transaction without charging "fees" ...
|
|
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Discussions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|