Canadian $'s vs U.S. $'s

[trainman]

Question, when a Canadian trailer company advertises there trailers on there website in Canadian dollars do you pay the conversion rate for that product in U. S. dollars. Example, yesterday the rate for the U.S. dollar was .76 per Canadian dollar, so this means that if a trailer was priced at $35,000 Canadian dollars would be about 25% less if paid in U.S. funds, or about $27,000. I do understand that this rate fluctuates, so whatever the rate was at closing is what you would pay. Is this correct, or not.

trainman

[Glenn Baglo]

You get the rate that exists when your cheque is converted to CAD.

[Tom 72]

Glenn is correct. Alternatively if your bank offers currency exchange you could exchange it yourself. Don't forget you also have to wire or ACH it to Escape. If you choose, you could convert all or part now to pay later. Then you have safekeeping to consider. Safe deposit box? But the idea of locking down the exchange rate has appeal.

I think I would look into opening a savings account in Canada. TD Bank [Toronto Dominion] may be able to accomplish it. Then it's in Canadian dollars.

Finally, your credit card might be a way to facilitate payment.

It is a nice problem to have.

[GingerB]

We just purchased an Escape in August and we used Transferwise. I checked it out pretty thoroughly (Forbes magazine praised the service) and it was very easy and had a very low fee. Our bank tried to discourage us but I’m pretty sure that was because they lost about $300 in fees.

[steve dunham]

I have exchange USD for CND every year for close to 30 years to pay for our Canadian fishing trip . I have never had any US bank give us the published exchange rate . As an example last year when the official exchange rate was
.76 USD to $1 CND the rate we got was closer to .80 USD to $1CND plus a $6
exchange fee . I would call around to several banks to check .
We are only exchanging about $2000 USD so you may get a better rate on a larger sum .

[Civilguy]

Ultimately, you will not get the exchange rate that you see on the Internet. There will be a fee and/or rate premiums involved in the currency exchange. It can be substantial.

Escape will accept your check in USD and have it converted to CAD at their bank, Vancity. Apparently Vancity is a co-op and their fees are much lower than some of the commercial bank options I looked at. So, this approach offers convenience and simplicity.

We used Transferwise just about a year ago. They charged us some $240 for exchanging about $40,000 CAD. I believe that going with Vancity would have cost us approximately $560 USD additional.

Currency exchange is a business. I looked at Transferwise, OFX, Travelex, KnightsBridge and XE. By the time I was done, my head hurt and I really never felt like I fully understood all of the options and costs.

The different vendors structure the fees differently which makes comparison difficult. In one case I had to create an account just to see what the bottom line would be.

Transferwise may not have been the cheapest, but I ended up feeling like I had accomplished enough savings that I gave up on trying to compare and evaluate all the others.

Whoever figures it out, let me know!

[FRED SMAILES]

well you guys south of the 49th have problems too. ours are a little different.
If they say the rate is .76$ we end up getting about .66$US for a Cdn $.
Hurts when I take 3000 cdn and get 2000US!!

[trainman]

Thanks for all the answers. So if the Escape ad says $35,000 for there trailer in Canadian dollars at the exchange rate of somewhere around 20% with fees give or take a few percent then I will pay somewhere around $28,000 U.S. for the trailer, correct. If I'm wrong on this, tell me where I'm miss-figuring this, thanks.

trainman

[steve dunham]

Originally Posted by trainman

Thanks for all the answers. So if the Escape ad says $35,000 for there trailer in Canadian dollars at the exchange rate of somewhere around 20% with fees give or take a few percent then I will pay somewhere around $28,000 U.S. for the trailer, correct. If I'm wrong on this, tell me where I'm miss-figuring this, thanks.

trainman

Your math is correct ! but be aware that the base price of a new Escape has risen due to US tariffs . Secondly the cost of options has also risen accordingly due to the tariffs . $35K CND will get you a pretty basic / standard Escape 21 which is a really nice trailer but the options add up quickly .
It’s not that hard to get the total price up around $50k CND with options and customizing ( flooring , fabric , countertops )

If you go to the Escape Forum there are many threads on how to get the most favorable exchange rate and pay the least amount of fees when paying from the US , might be worth taking a look

[WizWid]

Originally Posted by steve dunham

Your math is correct ! but be aware that the base price of a new Escape has risen due to US tariffs .

I think THAT price rise kicks in on Dec 1. So there is still time....

[trainman]

Originally Posted by steve dunham

Your math is correct ! but be aware that the base price of a new Escape has risen due to US tariffs . Secondly the cost of options has also risen accordingly due to the tariffs . $35K CND will get you a pretty basic / standard Escape 21 which is a really nice trailer but the options add up quickly .
It’s not that hard to get the total price up around $50k CND with options and customizing ( flooring , fabric , countertops )

If you go to the Escape Forum there are many threads on how to get the most favorable exchange rate and pay the least amount of fees when paying from the US , might be worth taking a look

Thanks Steve, I know you live close to Canada and are familiar with how this works, I always respect your input. I thank the others for there replies to.

trainman

[AandB]

US$ to CA$ calculator

https://www.td.com/ca/en/personal-ba...#/fxcalculator

[Civilguy]

Originally Posted by trainman

Thanks for all the answers. So if the Escape ad says $35,000 for there trailer in Canadian dollars at the exchange rate of somewhere around 20% with fees give or take a few percent then I will pay somewhere around $28,000 U.S. for the trailer, correct. If I'm wrong on this, tell me where I'm miss-figuring this, thanks.

trainman

80% of the CAD price would be about right for budgeting at the current exchange rate.

In WA state, we pay another 10% or so of sales or use tax on top of the USD price when we purchase and register a vehicle or trailer.

Texas looks like it's 6.25%, which would be $1,750 additional on your $28,000, so factor that in too.

[Fred762]

sez $1000C costs you US $749 approx

https://www.google.com/search?q=how+...hrome&ie=UTF-8

[CarefreeLad]

you probably can't pay in US dollars and if you do you WILL get a lousy exchange rate.


You are best off to exchange the funds at a local (to you) currency exchange (or better if you work with a foreign exchange trader as I do). and then wire the money or send CDN cheque...or load up a temp credit card with the CND funds and pay that way.


The rate you see online is what banks use to exchange money between themselves - we always get a few points less - then get dinged with a usually hidden fee.


Banks often offer today the rate at the end of yesterday. If you use a foreign exchange trader...you can get the rate right now (trust me that make a big difference).


Hope some of that is useful - as I said in another recent echange thread. i own a software company that does all it's business in the US (I'm in Canada). I do USD to CDN exchanges every week.


If I can be of any help - you know where to find me


-Bryan

[dfandrews]

John,
We kept it pretty simple when we got our Escape. We contacted ETI to order, and used a credit card for the initial deposit. Then during the course of the wait, we sent a couple of checks to ETI for a major portion of the balance. In both cases, when Tammy went to their bank, we got the exchange rate on that day (no extra middle-men fees, just their bank fee, which wasn't much). When we picked the trailer up, we had less than $100 balance, again paid with credit card, getting ETI's exchange rate on that day. We had ETI also put the US Dollars paid on the final paid invoice, so we had a correct number when time to register in California.


You'll pay state (sales, excise, use, whatever) taxes when you register in your state, hopefully based on the US Dollars paid. (It took us talking to multiple clerks at DMV before that happened.)


Edit: P.S. re: your screen name: RR crew, enthusiast, ??

[CarefreeLad]

banks don't necessarily charge extra fees, but they will give you a worse rate than a currency exchange will - trust me...you paid for using your bank.


I'm amazed they let you pay by cheque - good job!!


wire transfers are usually a good way t pay as well - although if your bank wants to charge any more than $10 they are lying about the cost.


I switched to a foriegn exchange trader away from my bank for my USD to CDN exchanges - I get easily 2% more plus I get the real-time rate which saves me another few percent.


Maybe I'm more sensitive to all this because historically in Canada we get hosed on exchanges.

[dfandrews]

Originally Posted by CarefreeLad

..
I'm amazed they let you pay by cheque - good job!!
.....

Paying by check wasn't a problem. We ordered in November, sent a check in winter, another about the time the signed built sheet was due in summer, and picked up the Escape on Sept. 21. ETI had plenty of time for check clearance. (As I recall, it was about two weeks between sending the check, and clearing our bank and our notification).

[The_Kramers]

Remember if you try to use a credit card they may want another 3-4% to cover what the card company is charging them.


Garry

[CarefreeLad]

Originally Posted by dfandrews

Paying by check wasn't a problem. We ordered in November, sent a check in winter, another about the time the signed built sheet was due in summer, and picked up the Escape on Sept. 21. ETI had plenty of time for check clearance. (As I recall, it was about two weeks between sending the check, and clearing our bank and our notification).

No I mean that they would accept cheques at all - rather unusual for big ticket items...at least up here. Try and buy a car with a cheque! hehe


Glad it worked so well for ya!