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View Full Version : BMW Canada hopes cash rebates will keep buyers out of U.S.


m3bmw99
10-20-2007, 12:33 PM
http://www.theglobeandmail.com/servlet/story/LAC.20071020.RBMW20/TPStory/Business

Dear Mr. XXXXXX

What we are doing about currency fluctuations.

We would like to be the first to inform you of a special announcement regarding the currency disparity with the United States.

We recognize that selecting a new vehicle can be an exciting yet timely process. You may have delayed your purchasing process because you would like to see what strategy BMW Canada will make in response to the strong Canadian Dollar. BMW Canada recognizes that currency fluctuations are a hot topic and decided to take action.

The following list outlines the changes that are currently in effect as of October 17, 2007.

1. Enhanced lease/loan rate support.
a) All 2007 models rates range from 2.9% - 4.9%
b) All 2008 models rates range from 4.9% - 6.9%
c) The lease/loan rates are subject to change December 31, 2007.
2. Alternate Delivery Credit

This credit pertains to those who decide to do a cash purchase. Depending on which 2007 or 2008 model you select, you could receive $1500 to $25,000. The alternate delivery credits have been carefully calculated to address currency concerns for cash buyers. The alternative delivery credit is only valid until November 30, 2007

3. Enhanced 60-month financing

With the same rates as 24 - 48 month term this is a significant enhancement for non-lease purchasers looking for attainable payment terms.

europrince
10-20-2007, 06:55 PM
why don't they just drop their msrps instead of giving cash back?

propr'one
10-20-2007, 06:58 PM
easier to change a cashback when the US dollar bounces back

europrince
10-20-2007, 06:59 PM
when it bounces back? not in the next several years. their dollar is in some deep shit.

propr'one
10-20-2007, 07:03 PM
that's funny.

europrince
10-20-2007, 07:06 PM
I'm dead serious, bro. They are letting that dollar drop to keep liquidity in the US. foreign investors of US treasuries are starting to bail. Oil is starting to trade in Euros instead of US dollars. Our dollar is going higher, my friend. The US economy is hurting underneath the surface.

NickP
10-20-2007, 07:29 PM
I'm dead serious, bro. They are letting that dollar drop to keep liquidity in the US. foreign investors of US treasuries are starting to bail. Oil is starting to trade in Euros instead of US dollars. Our dollar is going higher, my friend. The US economy is hurting underneath the surface.

Almost every analyst on the planet is predicting a Canadian dollar in the low / mid 90's by the end of next year.

http://www.cbc.ca/money/story/2007/10/12/rbcgrowthforecast.html?ref=rss

piran21
10-23-2007, 10:26 AM
http://www.theglobeandmail.com/servlet/story/LAC.20071020.RBMW20/TPStory/Business

Dear Mr. XXXXXX

What we are doing about currency fluctuations.

We would like to be the first to inform you of a special announcement regarding the currency disparity with the United States.

We recognize that selecting a new vehicle can be an exciting yet timely process. You may have delayed your purchasing process because you would like to see what strategy BMW Canada will make in response to the strong Canadian Dollar. BMW Canada recognizes that currency fluctuations are a hot topic and decided to take action.

The following list outlines the changes that are currently in effect as of October 17, 2007.

1. Enhanced lease/loan rate support.
a) All 2007 models rates range from 2.9% - 4.9%
b) All 2008 models rates range from 4.9% - 6.9%
c) The lease/loan rates are subject to change December 31, 2007.
2. Alternate Delivery Credit

This credit pertains to those who decide to do a cash purchase. Depending on which 2007 or 2008 model you select, you could receive $1500 to $25,000. The alternate delivery credits have been carefully calculated to address currency concerns for cash buyers. The alternative delivery credit is only valid until November 30, 2007

3. Enhanced 60-month financing

With the same rates as 24 - 48 month term this is a significant enhancement for non-lease purchasers looking for attainable payment terms.


Is that the actual body of the letter?

europrince
10-23-2007, 10:36 AM
Almost every analyst on the planet is predicting a Canadian dollar in the low / mid 90's by the end of next year.

http://www.cbc.ca/money/story/2007/10/12/rbcgrowthforecast.html?ref=rss

There is a saying in economics: 10 analysts, 11 opinions.

Most analysts have been dead wrong on the strength of the dollar so far. I've been following the US economy and the currency markets for many years. We will correct in the short to medium term, perhaps below par, but we'll come back stronger. Our currency is not a function of our economy, but a function of US dollar weakness against world currencies and a function of commodity prices.

You can believe what you want to believe.

BigD
10-23-2007, 10:55 AM
Almost every analyst on the planet is predicting a Canadian dollar in the low / mid 90's by the end of next year.

http://www.cbc.ca/money/story/2007/10/12/rbcgrowthforecast.html?ref=rss

When was the last time the analysts were right about any big prediction? They remind me of blind kittens feeling their way around. What was it like 5 years ago they said gas prices would be over a dollar by Christmas and keep climbing? The price is still below a dollar. I think the only function analysts serve is to scare the shit out of people for no reason, to drive the market into action when there's a lull of stability.

Nascar318is
10-23-2007, 11:01 AM
Now they are predicting gas to be $1.50 next year..lol

CDN=0.96714

It's dropped 6 cents since last week..

We don't want it to go any higher, it is hurting the economy, especially with guys like me buying stuff in the US rather then Canada. And not to mention all the mills closing because it is not worth it for the US to purchase in Canada. Lots of people loosing jobs over this. There is a mill around here that shut there doors and the pension fund got sucked dry, pretty awsome if you paid over $200,000 into your pension only to find out you will not be getting one cent and you will be stuck working as the door greeter at walmart..

europrince
10-23-2007, 11:14 AM
Now they are predicting gas to be $1.50 next year..lol

CDN=0.96714

It's dropped 6 cents since last week..

We don't want it to go any higher, it is hurting the economy, especially with guys like me buying stuff in the US rather then Canada. And not to mention all the mills closing because it is not worth it for the US to purchase in Canada. Lots of people loosing jobs over this. There is a mill around here that shut there doors and the pension fund got sucked dry, pretty awsome if you paid over $200,000 into your pension only to find out you will not be getting one cent and you will be stuck working as the door greeter at walmart..

Some industries suffer, others flourish. Such is life in a market economy. We need to learn to deal with it.

You're reading the inverse quote, USD in CAD

I'm in front of a live quote system, as part of my job. The current quotes are:
USD in CAD bid .9664 .967 ask (buy of USD)
CAD in USD bid 1.0341 1.0347 ask (buy of CAD)

Boots R
10-23-2007, 11:19 AM
Now they are predicting gas to be $1.50 next year..lol

CDN=0.96714

It's dropped 6 cents since last week..

We don't want it to go any higher, it is hurting the economy, especially with guys like me buying stuff in the US rather then Canada. And not to mention all the mills closing because it is not worth it for the US to purchase in Canada. Lots of people loosing jobs over this. There is a mill around here that shut there doors and the pension fund got sucked dry, pretty awsome if you paid over $200,000 into your pension only to find out you will not be getting one cent and you will be stuck working as the door greeter at walmart..

It's good for me, I have more import business. *wiggle*