Importing from US
03-13-2008, 09:52 AM
#1
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Thread Starter
Join Date: Jan 2008
Location: Montreal
Posts: 23
Importing from US
I read the other post concerning importing cars. I am in the process of getting an A4 3.2. It seems that there are only a few dealers still selling to Can.
I am a bit scared of all the trouble of importing but, from all the reading I did it seems it should go fine.
I will let you know.
P.S. sorry for the bad English.
I am a bit scared of all the trouble of importing but, from all the reading I did it seems it should go fine.
I will let you know.
P.S. sorry for the bad English.
03-21-2008, 04:53 AM
#6
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Thread Starter
Join Date: Jan 2008
Location: Montreal
Posts: 23
Re: Importing from US
Here is a little follow up. The dealer found the car, I transfered the money yesterday. With my luck our dollar that was relatively stable the last months decided to go down. So $1400 going in the air 
I would have wished to know more about money fluctuation and see if it should have waited a bit but.....
I still project to save around 10 000 so I wont cry to mutch.
I would have wished to know more about money fluctuation and see if it should have waited a bit but.....
I still project to save around 10 000 so I wont cry to mutch.
03-27-2008, 08:08 AM
#8
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Join Date: Jan 2008
Location: Aurora, ON
Posts: 70
Re: Importing from US
I work in the financial industry as my regular day to day job and currency fluctuates quite a bit on a daily basis. Generally the fluctuations are stock market based depending on what’s happening with inflation, the market in general and if money is moving from commodities to cash or otherwise.
So trying to time the currency to get a rate is tough, that’s why all those FX trading accounts offer a practice account because they know the average investor will either get lucky or get screwed. If that’s your game go to Rama or Niagara, better bet just put it all on red and cross your fingers.
When you convert money at the bank also remember that there is a between the market rate and the rate you pay. Banks have costs associated with converting currency and keeping currency on hand (bought at a previous rate now sold to you at the market rate) so they need a to mitigate these costs/risks. So even if the dollar is perfectly par, you will pay 1.5% or so on the money, so you'll get .985 to the dollar.
If you're looking to get even par the dollar must be over by a fair margin 1.02 or better. The larger the amount is the smaller the so ask your bank for the current rates. There are also exchange houses (a bit of a pain to use) that will offer better rates but unless your converting a large amount not really worth it. I would say anything over 20-25k would be worth it.
If you know you will be buying a car in the US, I would start watching the exchange rate. Right now it's .9810 and the rate to convert 1 Canadian Dollar to 1 US dollar (at a bank) is .9665 so you can see the built into the rate. 25000 should cost $25484 but it will cost $25866. You can't buy currency at the market rate because the bank is facilitating the transaction and the cost of that transaction which is why there is a . So watch the rates and if you know you will be converting a large amount wait until the dollar is over par then exchange your money and leave it in a US dollar account. Then when you need to buy the car then do your wire transfer to the bank in the us from your US dollar account and you don't have to take that days exchange rate if for some reason the exchange is way down for a few days in a row it won't cost you big time.
Just an FYI if in the future somebody reads this thread and would find that info useful.
Regards,
So trying to time the currency to get a rate is tough, that’s why all those FX trading accounts offer a practice account because they know the average investor will either get lucky or get screwed. If that’s your game go to Rama or Niagara, better bet just put it all on red and cross your fingers.
When you convert money at the bank also remember that there is a between the market rate and the rate you pay. Banks have costs associated with converting currency and keeping currency on hand (bought at a previous rate now sold to you at the market rate) so they need a to mitigate these costs/risks. So even if the dollar is perfectly par, you will pay 1.5% or so on the money, so you'll get .985 to the dollar.
If you're looking to get even par the dollar must be over by a fair margin 1.02 or better. The larger the amount is the smaller the so ask your bank for the current rates. There are also exchange houses (a bit of a pain to use) that will offer better rates but unless your converting a large amount not really worth it. I would say anything over 20-25k would be worth it.
If you know you will be buying a car in the US, I would start watching the exchange rate. Right now it's .9810 and the rate to convert 1 Canadian Dollar to 1 US dollar (at a bank) is .9665 so you can see the built into the rate. 25000 should cost $25484 but it will cost $25866. You can't buy currency at the market rate because the bank is facilitating the transaction and the cost of that transaction which is why there is a . So watch the rates and if you know you will be converting a large amount wait until the dollar is over par then exchange your money and leave it in a US dollar account. Then when you need to buy the car then do your wire transfer to the bank in the us from your US dollar account and you don't have to take that days exchange rate if for some reason the exchange is way down for a few days in a row it won't cost you big time.
Just an FYI if in the future somebody reads this thread and would find that info useful.
Regards,
03-27-2008, 09:03 AM
#9
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Thread Starter
Join Date: Jan 2008
Location: Montreal
Posts: 23
Re: Importing from US
To 986JIM: Boy! would I have liked to read your message before. Thanks for the time you put to write this message. It was to late for me but might be helpfull for somewone else.
When I spoke to the bank manager about exchaging money for somewhere else then the bank he told me it would be about the same because these places charge extra fees. Usualy he is very honest, for what it is worth, he said he gave me a VIP rate ( althoug I am far from being VIP). I still expect to save around 10K when all is done. My first calculations, where savaings of 13K, but the $ made me a funny face.
Thanks again
When I spoke to the bank manager about exchaging money for somewhere else then the bank he told me it would be about the same because these places charge extra fees. Usualy he is very honest, for what it is worth, he said he gave me a VIP rate ( althoug I am far from being VIP). I still expect to save around 10K when all is done. My first calculations, where savaings of 13K, but the $ made me a funny face.
Thanks again
03-27-2008, 09:06 AM
#10
Re: Importing from US
^ also when the dollar is at par or over 1.02 according to Jim dont get graddy if you are plannin gon buying the car purchese or convert your money into USD. There is risk in doing this but if you want to be sure to pay 1 for 1 than thats your best bet instead of waiting for the market to slowly creep and then boom down again. One lesson I learnt is cant get rich by beeing greeddy...and you can quote me on that
