Long Wait for Trailer but Great US->CAD Exchange Rate - Escape Trailer Owners Community
Journey with Confidence RV GPS App RV Trip Planner RV LIFE Campground Reviews RV Maintenance Take a Speed Test Free 7 Day Trial ×

Go Back   Escape Trailer Owners Community > Escape Me | General Topics > Paper Escape
Click Here to Login
Reply
 
Thread Tools Display Modes
 
Old 07-15-2015, 07:56 AM   #1
Senior Member
 
huskersteffy's Avatar
 
Join Date: May 2015
Location: Lincoln, Nebraska
Trailer: April 2016 21' "Ramble On"
Posts: 280
Long Wait for Trailer but Great US->CAD Exchange Rate

This isn't a very exciting topic but it affects all of those who have a long delivery wait and I'm guessing that this is a pretty common situation now that ETI's production schedule is so far out.

We have a 21 on order for April 2016. I've been watching the US->CAD exchange rate and am wondering how others are trying to hedge and minimize risk as far as final payment to ETI.

Options include:
1) Waiting till final payment is due and just dealing with whatever rate is in effect at that time. Downside is that rates are currently at historic lows (.78 - .79) and will "probably" be higher in the future. Difference could amount thousands of $$$.
2) Sending a big wad of cash to ETI far ahead of delivery. Upside is you capture good rate, downside is you incur risk because of the wait (heaven forbid something bad happens in BC or at ETI).
3) Using something like Currency Shares FXC (CurrencyShares - FXC). Upside is you take advantage of current favorable rate and minimize risk waiting for delivery of the tangible good your are purchasing. Downside is paying income tax on whatever "earnings" you'd capture when you sell (if CAD dollar goes up). Obvious downside is the risk that the CAD dollar really tanks.... however, it is at historical lows.
4) Walk into Canadian Bank, open an account and transfer from US. Hard to do if you don't live close to Canada.

I'd be interested in what others are thinking and doing. Full disclosure: I'm an engineer and can't help myself obsessing over this kind of stuff Must...... find.......optimum solution!

Thanks!
__________________
Do what you can, with what you have, where you are.
Theodore Roosevelt
huskersteffy is offline   Reply With Quote
Old 07-15-2015, 09:46 AM   #2
Senior Member
 
sturski's Avatar
 
Join Date: Mar 2014
Location: Jamestown, Colorado
Trailer: 2015 Escape 19
Posts: 232
I'm also an engineer and obsessive about that sort of thing, as well.

The interest rate on my savings account was pathetic, the exchange rate was as good as I've ever seen, so I sent a $30,000 personal check 6 months early. Worked just fine for me, though I'd use something trackable if I ever did it again (heaven forbid). Two weeks in USPS never-neverland was an itty bit stressful.

The 12 month wait kinda implies that ETI will be around a while (to me).
sturski is offline   Reply With Quote
Old 07-15-2015, 09:51 AM   #3
Site Team
 
Donna D.'s Avatar
 
Join Date: Nov 2008
Location: Portland, Oregon
Trailer: 2014 Escape 5.0 TA
Posts: 11,023
I track international currency, it's part of my job. CAD is now 77 cents...
__________________
Donna D.
Ten Forward
2014 Escape 5.0TA
Donna D. is offline   Reply With Quote
Old 07-15-2015, 09:58 AM   #4
Senior Member
 
Jim Bennett's Avatar
 
Join Date: Oct 2008
Location: Calgary, Alberta
Trailer: 2017 Escape 5.0 TA
Posts: 15,532
Quote:
Originally Posted by huskersteffy View Post
4) Walk into Canadian Bank, open an account and transfer from US. Hard to do if you don't live close to Canada.
Can you not open a Canadian account through your own bank? I know I have a US account set up by my Canadian bank rep, as well as a US credit card as it saves a bit of exchange fees as opposed to using my Canadian card. I dumped a bunch of cash in it back when it was near par, as I knew we were planning that Alaska trip we took last month. Saved a fair bit of money.

On the other hand, I would not worry too much about putting a deposit with Escape. Pretty sure they are on solid financial ground.
__________________
2017 Escape 5.0 TA
2015 Ford F150 Lariat 3.5L EcoBoost
2009 Escape 19 (previous)
“Most folks are about as happy as they make up their minds to be.” — Abraham Lincoln
Jim Bennett is offline   Reply With Quote
Old 07-15-2015, 10:14 AM   #5
Senior Member
 
Join Date: May 2015
Location: Rangeley, Maine
Trailer: 2005 Escape 17B Sold 2016. 2016 Escape 19 Sold 2019. 2019 Escape 21 picked up Sep 2019
Posts: 173
Quote:
Originally Posted by sturski View Post
The interest rate on my savings account was pathetic, the exchange rate was as good as I've ever seen, so I sent a $30,000 personal check 6 months early.
I did the same thing. Actually I did a wire transfer from Schwab in Canadian dollars. I just couldn't resist the exchange rate.
sallemann is offline   Reply With Quote
Old 07-15-2015, 10:26 AM   #6
Senior Member
 
cpaharley2008's Avatar
 
Join Date: Jun 2010
Location: Central, Pennsylvania
Trailer: Escape#5 2022 E19
Posts: 26,268
I prepaid both my Escapes and was able to take advantage of a cancellation and get one earlier than anticipated, something you may not be able to do if you still have a large balance due.
__________________
Jim
Sometime life gets in the way of living.......
cpaharley2008 is offline   Reply With Quote
Old 07-15-2015, 10:31 AM   #7
Senior Member
 
Patandlinda's Avatar
 
Join Date: Sep 2013
Location: Ventura County, California
Trailer: 2013 19 Escape
Posts: 7,204
Quote:
Originally Posted by huskersteffy View Post
This isn't a very exciting topic but it affects all of those who have a long delivery wait and I'm guessing that this is a pretty common situation now that ETI's production schedule is so far out.

We have a 21 on order for April 2016. I've been watching the US->CAD exchange rate and am wondering how others are trying to hedge and minimize risk as far as final payment to ETI.

Options include:
1) Waiting till final payment is due and just dealing with whatever rate is in effect at that time. Downside is that rates are currently at historic lows (.78 - .79) and will "probably" be higher in the future. Difference could amount thousands of $$$.
2) Sending a big wad of cash to ETI far ahead of delivery. Upside is you capture good rate, downside is you incur risk because of the wait (heaven forbid something bad happens in BC or at ETI).
3) Using something like Currency Shares FXC (CurrencyShares - FXC). Upside is you take advantage of current favorable rate and minimize risk waiting for delivery of the tangible good your are purchasing. Downside is paying income tax on whatever "earnings" you'd capture when you sell (if CAD dollar goes up). Obvious downside is the risk that the CAD dollar really tanks.... however, it is at historical lows.
4) Walk into Canadian Bank, open an account and transfer from US. Hard to do if you don't live close to Canada.

I'd be interested in what others are thinking and doing. Full disclosure: I'm an engineer and can't help myself obsessing over this kind of stuff Must...... find.......optimum solution!

Thanks!
We did final large payment at the end . Our take on it - it is what it is . The day you pick up your trailer you will forget all this . Seeing your trailer finally will be all that consumes your thoughts . It is one happy day . Pat
Patandlinda is offline   Reply With Quote
Old 07-15-2015, 10:32 AM   #8
Senior Member
 
Join Date: Sep 2009
Location: Southwick, Massachusetts
Trailer: None, sold my 2014 5.0TA
Posts: 7,124
Pretty much same as Sturski, sent a personal check as soon as I finalized the build sheet, which is just before your trailer goes into production. The remaining $2-$3k went on plastic just before completion so I could get the final paperwork and get started on getting it registered.

Been watching finance long enough to know that my crystal ball has no idea what the future will bring.
__________________
Happy Motoring
Bob
padlin is offline   Reply With Quote
Old 07-15-2015, 11:26 AM   #9
Member
 
Grant & Kathy's Avatar
 
Join Date: Jun 2014
Location: Bandon, Oregon
Trailer: 2015 Escape 21
Posts: 85
Quote:
Originally Posted by sallemann View Post
I did the same thing. Actually I did a wire transfer from Schwab in Canadian dollars. I just couldn't resist the exchange rate.
I did wire transfers in US dollars. The exchange rate I got from ETI's bank was 4 cents more per dollar that the transfer rate that I would have gotten if I had sent Canadian dollars.

A penny difference in the exchange rate doesn't sound like much but on $30,000 US dollars, one penny difference is $300 US dollars.

In our case the 4 cent difference saved us $1,200 US dollars.

That said I have no idea how you could time the exchange rate. For us it was just luck.

Grant
__________________

“The journey not the arrival matters.” – T. S. Eliot
Grant & Kathy is offline   Reply With Quote
Old 07-15-2015, 11:40 AM   #10
Junior Member
 
Join Date: May 2015
Location: Sedona, Arizona
Trailer: 2008 Bigfoot 25B21FB
Posts: 15
Another exchange option

If you have or care to open an account with Charles Schwab, they offer international accounts which allow you to hold cash in several foreign currencies, one of which is the Canadian Dollar. I think their exchange rate is also very fair. I have not looked in to all the details but plan to as I get closer to ordering. From what I have read, however, most pundits do not expect the Canadian dollar to drastically improve for the rest of this year, but one can never be sure!
shotgun is offline   Reply With Quote
Old 07-15-2015, 12:11 PM   #11
Senior Member
 
Join Date: Mar 2014
Location: Olathe, Kansas
Trailer: 2015 21ft Escape "Spirit of the Plains", 2014 GMC Sierra with max tow package
Posts: 1,100
I kind of had the same questions and handled it this way. My research into ETI shows that they are in the top 20% of revenue for all trailer manufactures and their revenue per employee is above the average of most of their competitors. This would indicate to me a well managed company. I could have purchased a report on ETI's finances from Dun & Bradstreet but I didn't think that was necessary. Just the fact of the backlog of orders on their production schedule says a lot. And they survived the great recession where Oliver ceased production for several years.

As for the exchange rate as the wise old trader said, it will fluctuate. I have been involved in grain marketing and have traded commodities on the Chicago Board of Trade, so you learn to take a profit when you have one. Yes, the US dollar has gotten a few cents stronger since I sent in the check to ETI, but I saw a profit and took it. Actually we gained over $4,000 just since last September when we put down our deposit. Unexpected international events can happen overnight and change the whole picture. It is a crap shoot out there and everyone has to do what they feel comfortable with. Loren
Loren & Cathy is offline   Reply With Quote
Old 07-15-2015, 12:16 PM   #12
Senior Member
 
huskersteffy's Avatar
 
Join Date: May 2015
Location: Lincoln, Nebraska
Trailer: April 2016 21' "Ramble On"
Posts: 280
Thanks for the input. It's reassuring to know that others did take the plunge of paying ETI for their rigs far in advance of pickup.
__________________
Do what you can, with what you have, where you are.
Theodore Roosevelt
huskersteffy is offline   Reply With Quote
Old 07-15-2015, 12:26 PM   #13
Senior Member
 
Greg A's Avatar
 
Join Date: Oct 2013
Location: Phoenix, Arizona
Trailer: 2015 Escape 19 "Seventy Degrees"
Posts: 3,495
I am using xe.com and they are offering me over 27% today. It is very simple to setup if you don't worry about the ETI banking information for free ACH transactions. You simply put in your bank information, the ETI address under recipient, accept the current offer and select a free mailed draft to ETI. They got my last Draft in about 7 days. The nice thing is you lock in the rate when you accept the offer. If you have any issues there is a 24 hrs support line and they are very helpful.
Greg A is offline   Reply With Quote
Old 07-15-2015, 12:34 PM   #14
Senior Member
 
Join Date: Dec 2014
Location: Milam, Texas
Trailer: 2016 ESCAPE 21
Posts: 158
We had the same discussions here at home. After looking at it all, we paid about 1/2 a few months back and last week when the rate got to .78 we sent a payment fed-x last friday and it got there monday. It converted at 1.256 and I was pleased at that.
thumper-tx is offline   Reply With Quote
Old 07-15-2015, 12:50 PM   #15
Senior Member
 
Join Date: Sep 2014
Location: Ventura County, California
Trailer: 2015 Escape 17A
Posts: 2,344
Quote:
Originally Posted by Loren & Cathy View Post
I kind of had the same questions and handled it this way. My research into ETI shows that they are in the top 20% of revenue for all trailer manufactures and their revenue per employee is above the average of most of their competitors. This would indicate to me a well managed company. ...

It's not surprising to read this.

In ETI's "story" on their website,
http://escapetrailer.com/our-escape-story/
Tammy writes of Reace "putting his degree in business to good use."
dfandrews is offline   Reply With Quote
Old 07-15-2015, 04:11 PM   #16
Senior Member
 
JStelly's Avatar
 
Join Date: Jun 2013
Location: Friendswood, Texas
Trailer: 2015 Escape 19' (sold), Escape 5.0 as of August 2019 (sold)
Posts: 664
When the exchange rate moved over the winter we made a big payment in February via a cashiers check. ETI deposited it immediately and we got a great rate. We had a small balance remaining ($2kUSD) that we paid about three weeks ago. All in anticipation of a July 16 completion date. So we basically paid in advance 90+ percent and saved about $4k on the exchange rate. In retrospect we would do the exact same thing in the future. We now have a $6.70 CAD credit with ETI. [emoji4]
JStelly is offline   Reply With Quote
Old 07-15-2015, 05:08 PM   #17
Senior Member
 
LDRay's Avatar
 
Join Date: Jan 2015
Location: Ceresco, Michigan
Trailer: 2015 escape 19
Posts: 134
We took advantage of the exchange rate and paid early. Wrote 2 large cheques from our credit union about 3 months apart. Both arrived in about 8 days time. It may be the old fashioned way of sending money but it worked for me. I guess ED nurses don't worry as much as engineers, we just take the plunge. Our pick up date is October 8th, we still owe $200.00 Canadian.

Soooooooo excited.
LDRay is offline   Reply With Quote
Old 07-15-2015, 05:19 PM   #18
Senior Member
 
OneOleMan's Avatar
 
Join Date: Sep 2014
Location: Seattle, Washington
Trailer: 2015 17B Sold 5/2016
Posts: 343
Don't worry, JStelly, you'll use it quite quickly once you get there. Don't ask how I know
__________________
Pat
Life is Good
When "Escaping Reality" Sold 5/2016
2012 4Runner
OneOleMan is offline   Reply With Quote
Old 07-15-2015, 05:27 PM   #19
Senior Member
 
float5's Avatar
 
Join Date: Nov 2010
Location: Denison, Texas
Trailer: 2015 21'; 2011 19' sold; 4Runner; ph ninezero3 327-27ninefour
Posts: 5,136
The trailer needs to be paid for at the time of completion and some have done that on pick-up, however, it seems that most by far pay large sums in advance, if not the whole amount.

We had an excellent rate when we paid the bulk a little while back and that protects us from any event that might suddenly ruin the rate. The rate in the last few days is the best in recent years, so it is a great time to pay. We will take advantage of that in paying the last few thousand soon.

You can take your chances and hope that the rate becomes even better, and maybe it will and maybe it won't, or you can do what most do and pay some large payments at different times with different rates, thereby protecting yourself from any big reversal.
__________________
Cathy. Floating Cloud
"Live in the sunshine, swim the sea, drink the wild air.... "
Emerson
float5 is offline   Reply With Quote
Old 07-15-2015, 05:32 PM   #20
Senior Member
 
Join Date: Mar 2014
Location: Olathe, Kansas
Trailer: 2015 21ft Escape "Spirit of the Plains", 2014 GMC Sierra with max tow package
Posts: 1,100
I am starting to get the picture that a lot of us have paid early. We didn't hit the peak of the exchange rate but in the grain trade they say if you hit the top price, you've waited to long. I do feel sorry for Reace battling it out with these volatile rates because for years it was essentially flat and a lot of his supplies come from the US. But again look at all of the US customers it has brought in. Loren
Loren & Cathy is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




» Featured Campgrounds

Reviews provided by

Disclaimer:

This website is not affiliated with or endorsed by Escape Trailer Industries or any of its affiliates. This is an independent, unofficial site.


All times are GMT -5. The time now is 07:54 AM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Copyright 2023 Social Knowledge, LLC All Rights Reserved.