Exchange rate movements, new car cheaper?

[BlackSuperb]

Having never specifically order a new car from overseas, all of mine have been in Aus already, how does exchange rate fluctuations affect final price?

I'm sure there would be a clause in the contract for unfavourable movements and subsequent price increases, is there one for the opposite case?


Sent from my iPhone using Tapatalk

[team_v]

It won't affect the price at all.
Apparently the purchase price is negotiated to reflect possible changes in the currencies.

[K1W1]

The contract is the contract you have agreed to pay $x and the dealer has agreed to deliver the car specified for $x. If the exchange rate plummets Skoda and the dealer loose if the dollar soars you loose. This is the reason cars very rarely drop in price. What the manufacturers do is add extras without adjusting the price the best example here is the 2011 cars coming with SatNav standard. When the exchange rate goes the other way the extras suddenly become chargeable items again.

[SKODA vRS147]

Thats definately true to certain extent but a lot of companies HEDGE the dollar (have an agreed figure for the exchange for as long as they get the provider to agree on). That way the importers now exactly what the profit margins are.

[K1W1]

That's just standard business practice for any importer who wants to stay in business but it does work against that importer when the dollar is rising. Banks never loose.

[thejack72]

... you have agreed to pay $x and the dealer has agreed to deliver the car specified for $x...

I know this is how it is supposed to work but 3 people I know have been hit up for more money. BMW, Volvo and Audi all tried to extract more prior delivery 'Due to exchange rate movements'.

One mate got slugged once with Audi 3 years ago, then 18 months later bought a second car, hand-writing on the contract that the agreed price would be all he paid even if exchange rates moved. The salesman tried to talk him out of writing it stating that that practice was no longer allowed.

Then 2 weeks prior delivery he got the call... 'Very sorry Sir but due to exchange rate movements the price of the car is considerably more than the original purchase price... we regreat that we must ask for $1,200 more...'. He told them he would sort something out then turned up on the day with nothing but the agreed amount and the contract - with his hand-written statement - that they had signed. The dealer principal ended up being called and admitted they didn't have a leg to stand on because they'd agreed to his extra clause by signing.

I was going to do it too but forgot... thankfully the dollar has only climbed since June.