Paying for trailer from the US

[Seneca]

Bottom line--there is a one percent way to do this and a three percent way. Make sure you do it the one percent way, if you want to save a little money.

The hundred basis points is the difference between the posted exchange rate, which is a wholesale rate on very large transactions, and the retail rate charged to smaller businesses and individuals. The break points are high enough that I seriously doubt ETI itself engages in transactions large enough to reach them--certainly no individual trailer purchase would.

Oh, and you'll have the wire fee at your end, and a $17 Cdn. wire fee at the ETI end.

The three percent way is, I'm guessing, what everyone is trying to avoid. It's basically the equivalent of buying currency at the hotel desk. It's that retail exchange rate, plus a markup for the intermediary. I think it's what everyone is jumping through hoops to avoid. And you will save $500-600 if you go to the trouble of accessing the one percent solution.

[jnfrombigt]

Well I went back and checked the "published" rate for the day Escape got my check and the Canadian dollar was at about .762 to the USD. Also it cost me $53 to FedEx overnight. After the conversion the rate on that transaction wound up at .7850. So 2.3%. It was only a $5000 USD check so I was out about $65 compared to the rates on the other transactions not counting the $53. Bank charges me $45 for a wire so $8 difference there. At least from my perspective it's best to pay Escape $3000 CD by credit card and the rest by wire transfer.

[cpaharley2008]

Over my 4 Escape purchases, I only used a wire transfer once and it took close to 10 days before it was found. All the rest of my purchases were via personal check, overnight or mail.

[jnfrombigt]

Jim They had mine in 2 days. And in my case the rate was 1.3 % better than the outcome of sending Escape a check. Your experience may have been different.

[Rrgramps]

Originally Posted by cpaharley2008

Over my 4 Escape purchases, I only used a wire transfer once and it took close to 10 days before it was found. All the rest of my purchases were via personal check, overnight or mail.

Me too on the personal check for my first $10,000 payment.

Per ETI protocol, I paid the remaining $24,000 with a US Cashiers Cheque from my local credit union. I went to my Cr.Un cashier, asked for a cashiers check in the amount of $24,000 to be made out to Escape Trailer Industry, and took it with me to Chilliwack. I gave it to ETI, went through my orientation, drove back across the border, met up with ETI’s driver, and he hooked up my Escape 21 to my truck. Then I drove 2400 miles back to my house.

ETI payed me back money. Hmm. Thought I’d owe them.

Nothing could have been simpler. No transfer, hence no transfer fees, no charges, except for my Cr.Un charging me $3 for typing out and issuing the cashiers check. Easy Peasy.

Took 15 minutes or less.

[StillCampin]

Except for the original $2500cdn deposit done by debit card I have been sending a personal check for $4,000us each month. (I loved seeing it recorded for over $5,500cdn.) When I stopped by a couple days before my deadline to sign & drop off custom items I also had a $10,000us check. That left a balance of a bit over $8,000cdn which resulted in a final check of $6,000us being sent this month (I used an online conversion calculator, purposely leaving a smallish balance). At orientation I will have adequate cdn cash with me for the remaining balance and getting the heating pads & insulation done a couple days later (after I add some conduit under the frame).

Note: I was told that personal checks are not accepted less than 60 days before delivery. This is what prompted the single larger "final" check instead of additional monthly payments.

[Higgy]

When I check online for conversion of $35,000 Canadian it reads $26,340.65 in US$. I understand there will be different transfer fees and/or associated cost to send ETI funds but in general will Isee these sort of saving because of the exchange rate or am I way off?

[gbaglo]

You won't get that exchange rate unless you are dealing in multi milllions, billions of dollars. It will cost you more.

[kootenaigirl]

As an example on the Wells Fargo currency exchange site $35000 Can comes out to $27675 US today and that would be before any fees etc.

[Higgy]

So no US discount for me would mean looking for a used one in the US. I live in Maine and I have traveled to Can and bought small used items from Canada for cash and at a few hundred bucks and the party I bought from did give me very close to the exchange rate as in my example so I thought I could benefit somehow buying a ETI trailer direct. I may have to go back to the drawing board. Thanks

[gbaglo]

It's not that you don't get the exchange rate, it's that you don't get the rate that is published on the web. The published rate is the best rate that the best customers get for exchanging millions of dollars.

You still get a very good deal.

[kootenaigirl]

It is slightly better if you use an online currency converter at a Canadian bank. At the Royal Bank of Canada it would cost you $27160 US. Pretty good discount on the original Escape price.
Obviously as the exchange rate varies day by day you will never exactly know until you have paid the full amount.

[Higgy]

Oh, this is all good to know, yes agree it is still a very good exchange rate. I know we can find a used non fiberglass travel trailer cheaper and we are not wealthy folks but having a gel coated fiberglass unit is important to me and represents a stronger value both short and long term. Thanks to all for helping me out

[StillCampin]

This is an image of the payment record from my build sheet. I have no idea what the "official" exchange rate was on those dates. And it would reflect the receipt date not the sending date.

[Farmgirl]

I'll probably use USAA for the wire transfer. They use TransferWise and are transparent about fees and exchange rate. Why would USAA use an Estonian scam for their business?

[Farmgirl]

Originally Posted by cpaharley2008

I believe USAA is a regional bank and it like my bank has to go thru an international bank, Wells Fargo was the one my bank used. All of this cost extra fees. DHL cost me $35, next day delivery.

USAA is not a regional bank. It serves members of the armed forces and their families. It uses TransferWise.

[cpaharley2008]

Regional meaning US only, no international transactions like Wells Fargo.We shall see....and let us know.

[Tam2004]

Originally Posted by Farmgirl

I'll probably use USAA for the wire transfer. They use TransferWise and are transparent about fees and exchange rate. Why would USAA use an Estonian scam for their business?

Right on!! USAA is treating you right. If they did what most banks do - they would have to use Wells Fargo (the only bank in the US allowed to do international transfers) - but because they know about the actual costs - they are giving you a leg up by using Transferwise. I am glad for you and glad for other military people.

[gbaglo]

Originally Posted by Tam2004

Wells Fargo (the only bank in the US allowed to do international transfers)

I find this very hard to believe.
TD Bank, for instance, has many branches and businesses in the USA and is headquartered in Toronto, Ont. Canada. US investment houses transfer millions of dollars a second across the world.
Curious where you found this "fact".

[peter]

Message from "The Wife" - We found the easiest way when we were having our Escape built was to use our Mastercard to make payments along the way and then make the payment right away to cover the amount that was charged. No extra charges, no interest charged on the credit account because the balance was always paid off. We broke it into 4 X $10,000. payments. Worked like a charm. Easy peasy!