$ vs. Euro for purchase of French Cats

[sailingabroad]

Originally Posted by Kiwicat

When I made my recent purchase I was able to get a Euro loan from my New Zealand bank.
We just asked if the banks could lend us funding in Euros and they were happy to setup the foreign exchange account for us..
When the NZ/Euro was at its peak we chose the moment to pay down the loan.
Not sure if US banks do the same but we managed to save .10c on the dollar this way and bought a few toys with the discount/savings achieved.

Great work on timing the NZD/EUR Kiwicat. The NZD has been hammered as of late, so you definitely should be celebrating.

Most international banks will offer this service but I am unsure about US banks, as they are very old school in their product offerings and ease of use. Most banks in America make you go into the branch to do an international transfer. They also still charge for domestic transfers to send and receive funds (very uncommon in the global banking industry where it is custom to be free to transfer to any domestic account).

If you ever take out a loan in another currency, it is critical to know the risks of foreign exchange movements have on your loan repayments.

It's always best to hedge your loan with a forward contact or option if you do not want to have any downside risk. this can usually be done with a 5-10% deposit. It guarantees you a fixed rate for the term of your loan.

Regards,

Ed Wiley

[Pacey16]

Apart from cost there are other things to take into consideration, I recently bought a boat in France and it took the Brokers 3 Months to cancel the French registration. Luckily I wasn't going anywhere in a hurry.
Also in foreign countries you are more at the mercy of the locals as they know you have limited powers especially if you dont talk the language, (imagine the hassle and cost of taking court action in a foreign country)
I was then charged 2,300 Euros for a 2hr operation of putting the boat in the water.
Buying a Boat should be a pleasure not a bad experience, Although I am happy with the boat I wouldn't do it again.

[rabbi]

Originally Posted by Pacey16

Apart from cost there are other things to take into consideration, I recently bought a boat in France and it took the Brokers 3 Months to cancel the French registration. Luckily I wasn't going anywhere in a hurry.

Cancellation happens within a day i was told by some french friends. If andmonly IF you know who to talk to. But as you say you are at the mercy of locals and french can be very special in this regard.

[Latchdaddy]

Originally Posted by Kiwicat

When I made my recent purchase I was able to get a Euro loan from my New Zealand bank.

We just asked if the banks could lend us funding in Euros and they were happy to setup the foreign exchange account for us..

When the NZ/Euro was at its peak we chose the moment to pay down the loan.

Not sure if US banks do the same but we managed to save .10c on the dollar this way and bought a few toys with the discount/savings achieved.

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