FOREIGN EXCHANGE AND CAR LOAN

FOREIGN EXCHANGE AND CAR LOAN

Rarely do people get the opportunity of purchasing the car they always wanted from the money that’s already saved up in their bank accounts. This is actually a dream come true for many people. That is the main reason why individuals who want to own their dream car opt for car financing. Car financing rates go hand in hand with car financing.

Whether you are looking for a brand new flashy Ferrari or an average second hand car just to travel around the city you could still find the best rates from an online auto finance provider. Some of these online finance providers would not even consider your bad credit history. With the competitive market in car financing the rates have come down in a rapid phase and also the options involved in a finance agreement which are beneficial for the customer are higher in numbers these days.

With all sorts of car finance plans in the internet it is sometimes hard for a newcomer to the field to figure out which plan would give them the best benefits. Comparing the prices from several of these companies will help you in big time to come to terms in who will provide you with the best option.

Times have changed for the better. Many auto finance companies today provide car financing loans to clients even if they suffer from bad credit scores. Some companies do not consider the credit history of a person, but focus more on his or her ability of repaying the loan with their current assets. Car financing rates are usually higher in almost every company; therefore one must be sure of their ability of paying back.

The World Wide Web provides ample support with regard to auto car financing rates.

If the car dealer you are interested in has a website, all you need to do is log in to the particular website and browse through their web pages. A rate trend index will provide you with the weekly updates in car finance news and events. Experts’ comments would also help you gain few tips in finding the next best car finance for your needs. After all getting a car finance could well be the biggest investment in your life and hence you are required to be double cautious about it.

FOREIGN EXCHANGE SCENARIO

This fact sheet deals with the translation of trading stock values assuming the taxpayer has not chosen to use an average rate of exchange for foreign currency amounts

Classic Cars orders and pays US$3,000 for gearboxes from its supplier. The effect of the terms of the contract is such that these items become Classic Car’s stock on hand when payment of the items is made. These items remained on hand at year’s end. The exchange rate on 1 May 2004 is A$1.00 = US$0.50. On 30 June 2004, the market selling value of these gearboxes is US$3,100. The replacement value is also US$3,100. The exchange rate on 30 June 2004 is A$1.00 = US$0.60.

The exchange rate to use is the rate prevailing on 1 May 2004.
The translated value is A$6,000.
The exchange rate to use is the rate prevailing on 30 June 2004.
The translated value is A$5,167
The exchange rate to use is the rate prevailing on 30 June 2004.
The translated value is A$5,167.

Forex rates and car price

I was curious why forex rate changes don't show up in car prices that have some component of imports. For most of the C+ higher segment this ranges from 25% to 100% (CBUs). In a simplistic model if a car price has X% import component then a Y% appreciation in INR should lead to about X*Y decrease in the price. Following is a table assuming 15% rupee appreciation (as with INR vs. many currencies recently)

Car Price Import fraction Expected decrease
10L 0.3 4.00% - 45K INR
12L 0.4 6.75% - 81K INR
24L 1.0 15.00% - 3.6L INR

So the variations could be pretty large based on localisation content. Who gets to pocket these "gains" ? Why these don't get passed on to the poor buyers. Have there been precedents where a company has passed on such gains to the end buyer. I understand it would be cumbersome to change a car price everyday as forex rate moves but periodically it could be possibly done

Predict the Next Hottest-Selling Cars

It's called the Car Stock Exchange and it may be considered a game, but is it? Yes, you use play money to buy fantasy stocks, but those stocks are tied to real vehicles that you believe will either be a sales boom or bust. CSX trading may deliver a real predictive message about how new vehicles will do in the American marketplace. You are becoming an automotive forecaster while attempting to outsmart your peers by trading car stocks for play profits that will earn you prizes for your superior performance. Expect to hear new lingo around the water cooler, something like, "I went long G8 and short Sequoia and made big bucks, CSX bucks."

Now you have a chance to compete with our team and your friends by employing the Wall Street trading strategy of "buying low — selling high," and not necessarily in that order, as CSX allows you to "short" car stocks that you believe will fall short of their predicted sales targets six months from their on-sale showroom release dates. You'll have to ask yourself questions like, "Sequoia sold just 23,273 in all 2007. Can the all-new model really sell 18,900 in its first six months based on a full-year 2008 estimate of 42,000?" Or, "The new BMW 1 Series is cheaper than the 3 Series, which sold 142,490 in 2007, so even with fewer model variants, should the 1 Series sell more than 9,000 units in its first six months?" As your CSX Car Stock Guru blogger, I will only give you the facts, leaving it up to you to make your own "investment" decisions.

We'll start with 25 "car stock" choices and add a new vehicle stock weekly in a so-called initial public offering (IPO), to use Wall Street jargon, then retire them after their first six months of sales. The stocks are priced based on the expected six-month sales projection. For example, the BMW 1 Series has a 9,000-unit six-month forecast, so it's priced at $9 per share. Toyota Corolla at 137,250 units is priced at $137 and Nissan Murano at 33,750 has a starting price of $34 per share