Canadian money, wow Options

[Rayme]

http://finance.yahoo.com/currency/convert?...=USD&amt=1&t=5y

The canadian money is gaining alot of power these time.

So much, me and my friend calculated and its now cheaper to go buy a new car in the states, even after the taxes an all. You can litteraly saves thousands of dollars on cars like S2000 and Nissan 350Z.

Even the New civic SI comes almost a whole 4000$ cheaper!!!

Example :
New SI in america : 20,290
New SI in Canada : 26,080

Total cost in Canada after 15% taxes : 29,992$

If one smart enough go to buy one in the states, he only needs 22,664 Canadians, after custom taxes it comes to 26,063, thats a whole 4K less!

Anyhow, just wanted to share, careful fellow american we're taking over



This post has been edited by Rayme: Apr 29, 2006 - 4:36 PM

[Galcobar]

The general expectation when companies set prices in the two countries is that the Canadian dollar should be worth about US$0.85.

Thus, can of pop is US$1 in the states, or C$1.25 in Canada. At the US$0.85 mark, they actually cost the same.

Now that the Canadian dollar has gone past the US$0.85 mark, custom rates and relative prices favour a Canadian buying in America. When it was below US$0.85, a Canadian buying in the states usually faced a premium (e.g., would cost C$1.35 for a can of pop in the US).

One thing to be aware of: the rates talked about in the newspapers aren't accessible by anybody with less than a few billion dollars to run through the currency markets. Banks and others who do the buying and selling of currency to the little people set their rates to make money in both directions, and that cuts into any advantage you get with a strong dollar.