Hal56

I wil be getting my 450 early August--one of my concerns is if the US Dollar weakens Lexus will need to raise the price. Early this year the dollar against a basket of leading currencies including Yen and canadian dollar--where our cars are built -was at 87--now its 80 for a 10% difference . LAst year it got to 71--71 from 87 is a 19% difference so I am wathcing that for possible US prices increases.

On the other hand, after we get ours, if the dollar weakens, ithat would aid our residual values.

A weaker dollar would also make us built cars a better financial deal.

I am a trader and as i type this I am watching the US Dollar flirt with breaking below 80.

DNC

I may be missing something here, but how is the value of the dollar going to effect a deal you have already made, or have you not made a deal yet?

Hal56

my deal is based on a discount off sticker price--we contracted before the prices were known.

In theory i could go elsewhere (but not get the car I desire) or I could just walk away. But my point is that if the dollar weakens against the Yen and Canadian Dollar Lexus-among others--will need to increase their prices.

afpj

That's a great deal. Congrats. I couldn't come close to that, but we live in an area with 1 dealer in over 100 miles, and I don't have the time to drive or mess with delivery of something I never seen. Less than Edmund's TMV is usually a good thing. I also looked at carsdirect and I bet you would beat their price target, and that's good too.

Also congrats on no nav...not heard anything really positive about the voice recognition, and my Garmin kicked butt over my 05 RX nav.

DNC

I have never heard of making deals on cars that are subject to change later until hearing from some on this list. In our case we priced the car figured a dollar amount off the MSRP and placed the order with no money having exchanged hands. The deal is locked at that price. This is the way I have ordered all cars since ordering my first 1980.

rxets

I do hear, in some rare situations, to pre-order the object, which doesn't become available in the market or which is limited the quantity of, may have the price changed when finally it's ready to deliver to you. To me, 450h shouldn't be in this category in current economy situations. But, who knows!? Some dealers are using all the leverages they can get to earn extra money from customers.

DNC

I see what you have just described as being another good reason not to be at the front of the line.

DNC

If you contracted before the price was known why do you care what the price is or what the dollar does?

Hal56

As I have said before my deal was based on a percentage discount off sticker price-when I ordered the car Lexus had not released the prices.

I am just saying that as the dollar depreciates the cost of imports in general wil increase--thats partially why oil is increasing in dollar terms.

DNC

So as long as you get the percentage discount you want you don't care what the amount is that you will pay?

Hal56

stop and think about it--the reason I posted this was to say that I was concerned that withthe dollar depreciating, i was concerned lexus would raise prices which would affect my price.

and as well all imports would be raising prices--the dollar was 87 not long ago--it did drop below 80 yesrterday and now 79.67 this morning--

that is an 8.5% decline in dollar value--meaning somebody pays more dollars to pay off a foreign currency purchase.

if our rx's cost 50k--an 8% change just for currency is 4k additional curremcy fluctuation price. Toyoota motors is already posting losses--

now--if you get your car before the price change your residual value wil hold up stronger. If after --you pay a higher price.

nuff ssid.

except our buds on this board who reside in canada--they have a motherload of natural resources-their currency getting stronger so they can visit us on the cheap.

come on down!

but this is why trading currencies--if you get it right--is profitable.

psu77

I would think that Toyota placed foreign exchange hedges to lock in the rates when they set their MSRP for the car. Otherwise the price would go up and down each month. Most corporations with major foreign exchange risks will use hedges to lock in the rates for an extended period of time.

I'm not a foreign exchange trader but I did stay at a Holiday Inn Express last night.

afpj

My salesman stated that the newer shipments later this year of RX's will have a higher MSRP. I don't know if this was a typical sales ploy, so we'll see.

DNC

All you have just described is the reason I would NEVER order a vehicle without knowing a price. It defies logic. If all that worries you now maybe you should have known a price before ordering.

Hal56

never say never

I am comfortable with what I am doing--are you.