156 replies to this topic

[Klort]

No, it's smaller than the current Golf. In fact, it's about the same size as our former VW Caribe. I used to have a VW Caribe and I loved that car! The Americans called it Golf or was that the Europeans?

Just looked it up.. Mexico had the Caribe (mine was registered in BC) while the Europeans called theirs "Golf" and Americans had "Rabbit."

In 1985, Americans changed theirs to "Golf" and so did the Mexicans.

[richsinc]

And now back to the topic of this thread... rollercoasters?

Union Bank of California

October 10, 2008

The Mexican peso continued its sharp decline against the dollar with concerns on the worldwide economic downturn. The Mexican economy is looking to slip into recession with the economic downturn hurting the demand for exports. The Mexican central bank tried to help the peso as they sold 3 billion US dollars to try and stop the currency’s dive.

EUR/USD 1.3549
USD/JPY 99.95
GBP/USD 1.7105
USD/CAD 1.1780
USD/MXN 13.3958
USD/CHF 1.1197
AUD/USD 0.6616
NZD/USD 0.5966
USD/DKK 5.4942
USD/SEK 7.0777
USD/NOK 6.2082
USD/TWD 32.440
USD/CNY 6.8345

[richsinc]

Regarding my statement about face value and intrinsic value of money, my example was with factors being constant. But with variables changing daily. it is a different ballgame. If that same US$1 Coke is bought with Pesos at 13 to 1 rather than with Pesos bought at 10 to 1, you will come out about 24% better off; given the shelf price in Pesos has not gone up. Just wanted to be sure that was understood.

And I am very curious about ’shelf prices’. Anyone notice that if in the past, shelf prices change with the exchange rate changes??? I noticed that coffee went up last time I bought it yesterday. Just very curious about that.

But coffee may not be the best gage depending whether or not Juan Valdez’s donkey got rid of his hemorrhoids or whatever.

[Miggiesmallz- TEXMEX]

Regarding my statement about face value and intrinsic value of money, my example was with factors being constant. But with variables changing daily. it is a different ballgame. If that same US$1 Coke is bought with Pesos at 13 to 1 rather than with Pesos bought at 10 to 1, you will come out about 24% better off; given the shelf price in Pesos has not gone up. Just wanted to be sure that was understood.

And I am very curious about ’shelf prices’. Anyone notice that if in the past, shelf prices change with the exchange rate changes??? I noticed that coffee went up last time I bought it yesterday. Just very curious about that.

But coffee may not be the best gage depending whether or not Juan Valdez’s donkey got rid of his hemorrhoids or whatever.

I haven't noticed any difference in shelf price, but my $540.00 peso purchase at WalMart Rosarito with my Visa card only charged me $46.00 dlls.......... $540 would usually be something like $51.00 dlls.

[andy]

The prices most everywhere in Mexico are going to increase (especially in the border towns such as TJ where most businesses are thinking dollars). The peso has devalued so fast that they stores can't raise their prices fast enough.

It's a really good time to buy big ticket items in TJ (assuming you earn money in dollars and can exchange for pesos at or close to the market rate). Market rate today is apx. 13 to 1. The gas stations I filled up at today had posted 12.5 pesos for 1 dollar. Most casa de cambios are lower but have very big spreads between the buy and sell rates. Casa de cambios are greatly impacted when the exhange rate moves this fast. If they have more pesos than dollars, they are in trouble since those pesos they have 'in stock' are worth much less. They want to keep the currencies as close to 50 - 50 as they can.

If you are in the market for expensive items such as furniture, car, etc that is priced in pesos - buy it now before they increase the price in pesos...

The poor Mexicans earning pesos is going to lose out again... as soon as the prices go up, they have effectively just lost 20% or so in buying power... Maybe they will get luck and the exchange rate will go back to 11 to 1. We'll see.

[andy]

Rented one in Mexico City, cool car, very economical. but isn't it just a VW Golf with a different name?

BTW, the Pointer is nothing like the Rabbit. The Pointer is a cheap car for the 3rd world market. My wife had a 2004 model - we got rid of it. It's like driving a 1985 Honda Civic or similar. Don't know about the 2008 model but the 2004 model that my wife had cost about $7,000 - what do you expect for $7,000. Here are some of the compromises:

NO power steering
NO ABS
NO Airbags
NO Air conditioning
Cheap seats, cheap suspension, etc.

This was the base model so it's also possible they have some upgraded model with more features.

Also, very unlikely that this model could be imported and registed in the US - especially California. It's not going to have the required emission sticker or safety features.

[andy]

Wanted to comment on changing your money. Here are good options:

* BEST option - if your US bank does not charge you excessive fees - is to use a foreign ATM is to withdrawal pesos directly from a Mexican bank ATM.
* Credit card can be OK also, but likely you have a 1-3% foreign purchase surcharge. And of course it does you no good to buy stuff on your credit card when you already have a balance and are going to pay interest. But be careful - although every place in Mexico is supposed to price items in pesos - sometimes you run into a place where the prices are in dollars then converted to pesos. The you use your credit card and are charged in pesos. Coverts back to dollars on your statement. You just paid two conversions... you will pay more in dollars on your statement than the price at the store.
* Every once in a while you find a store or a restaurant with a favorable exchange rate. You need to be on top of your game so you know when to spot this. Sometimes it can be better to pay in cash with dollars.
* Casa de cambios can been OK. Look for the places that have a very small spread between the buy and the sell prices. That is generally your best deal. 1% or less is what you are looking for:

Example:

Buy 12 Sell 13
Buy for 12, that's great, right? NO. These guys have a 8% spread between the buy and sell. In most cases the MARKET exchange rate is in the middle. They are making 4% when people change dollars to pesos and 4% when people are changing pesos to dollars.

Another Example:

Buy 12.9 Sell 13
How about this one? You got it, much better. Less than a 1% spread. Generally only casa de cambios that have very large volumes can afford to make 1/2% on each transaction. Generally this is much better for you.

Where can you find casa de cambios with a low spread? Somewhere busy. Some places in San Ysidro, Centro TJ at the corner of 9th and OCampo usually have very low spreads. And yea - I am strictly talking about places that don't charge any commission. The commission is bad - avoid at all costs.

Of course with the recent quick move of the peso from 11 to 1 > 13 to 1 the exchange rates at the casa de cambios have much bigger spreads at this time (in general). Certainly much better to use you ATM card or credit card until things stabilize.

[Klort]

Also, very unlikely that this model could be imported and registed in the US - especially California. It's not going to have the required emission sticker or safety features.

The one I want has A/C. It's about $11,000 - well, no, now it's $8,500. My Audi A4 was bought new in D.F. and I was never able to get California plates, but it was not a problem keeping Mexican plates on it.

California does not do safety inspection, they don't care about safety, but emissions.. man, it's unbelievable. EVEN if the car passes the damn emissions, it will STILL fail because it doesn't have "California Smog" on it. It is pure B.S. if you ask me!

[andy]

My Audi A4 was bought new in D.F. and I was never able to get California plates, but it was not a problem keeping Mexican plates on it.

Yea, for a short duration like a vacation - that's fine. But what do you do about renewing your D.F. registration? What about car insurance? What about when you get pulled over by the police and harassed for having plates from another country? Seems like a lot of trouble...

A friend of mine who's Mexican wife got a green card and was driving a Mexican plated car tried to register it in CA. No California Emissions sticker, no register (as you mention). And she couldn't cross the border in a car with MX plates and a green card. They had to sell the car in Mexico and buy one in California with California plates.

Doesn't seem practical to have a car with Mexican plates unless you are Mexican (or legal Mexican resident that can legally get Mexican plates) and live in Mexico.

[Klort]

Yea, for a short duration like a vacation - that's fine. But what do you do about renewing your D.F. registration? What about car insurance? What about when you get pulled over by the police and harassed for having plates from another country? Seems like a lot of trouble...

A friend of mine who's Mexican wife got a green card and was driving a Mexican plated car tried to register it in CA. No California Emissions sticker, no register (as you mention). And she couldn't cross the border in a car with MX plates and a green card. They had to sell the car in Mexico and buy one in California with California plates.

Doesn't seem practical to have a car with Mexican plates unless you are Mexican (or legal Mexican resident that can legally get Mexican plates) and live in Mexico.

That was the reason why I kept taking different routes to work while back here in California. I did take the car down to Mexico frequently, almost monthly, but not down to D.F. Ironically, I got harrassed more in Tijuana than California so I stopped driving the car down in Mexico for the past two years. I guess they have a problem with people from D.F. It was also a nice car so they might've assumed I was from Zona Rosa or something like that.

And I did not have car insurance, I only had liability insurance with high coverage.

I have received a few speeding tickets in that car in California, while carrying California driving licence, and not once have they asked me about the Mexican plates. They did always ask for insurance though - I think mine was through Progressive. They didn't care what car I was driving, but I don't think I would have gotten insurance if I wanted full coverage.

I had no problem crossing the border with D.F. plates and a U.S. passport. Registration was every two years, but I had mine for almost four years. The American police do not know how D.F. registration works so I never renewed it. I did have the sticker (in the window) and plates, but both were from 2004. I had the car until a few months ago.

[Scooby]

. . .. . A friend of mine who's Mexican wife got a green card and was driving a Mexican plated car tried to register it in CA. No California Emissions sticker, no register (as you mention). And she couldn't cross the border in a car with MX plates and a green card. They had to sell the car in Mexico and buy one in California with California plates.

Doesn't seem practical to have a car with Mexican plates unless you are Mexican (or legal Mexican resident that can legally get Mexican plates) and live in Mexico.

It seems strange that she couldn't cross a MX plated car while showing a green card.
Many people have more than one home, some in other countries.
They also have legal documentation to be in both the US and MX.
I'm not really sure why many TJ residents prefer to maintain US registration for their vehicles.
Importing them seem to be the only significant cost I can think of off hand.

The plus side for having MX plated cars are that insurance rates are cheaper (to the best of my knowledge).
Also, smog requirements don't yet exist so they aren't the pain in butt which many used car buyers experience.

[richsinc]

Can you guys take your car topic to the appropriate forum. It has no bearing on this topic.

George can you either delete or move the car posts, please. Thank you.

[Klort]

I'm not really sure why many TJ residents prefer to maintain US registration for their vehicles.

It's cheaper - and it's legal because all of B.C. is free-trade zone.

[Klort]

Will Mexico go through another currency crisis? If it has gone from 90 to 3,000 within a few days, I think that just may happen again.

I will go to the bank and get the very nice-looking $100 peso coins.

[andy]

BTW, the place that I was thinking of in Centro that usually has good exchange rates and a very small spread between the buy and sell prices is at the corner of 9th and OCampo. They do a very good business here, usually 3 windows going at once. Today the spread is less than 1/2 %. Rate around 12.03, 12.06 ... don't remember exactly.

[George Costanza]

Near Otay the rates are around 11.25 to 11.50

[richsinc]

Near Otay the rates are around 11.25 to 11.50

Just think George, if you moved from Otay, you could save a dime per dollar and not have to put up with the heat and eating dust in the summer and freezing at night in the winter.

[richsinc]

The Mexican peso weakened sharply against the dollar with concerns on the worldwide economic downturn. Weak US retail sales hurt the peso as the US is Mexico’s top trading partner.

EUR/USD 1.3574
USD/JPY 101.52
GBP/USD 1.7453
USD/CAD 1.1788
USD/MXN 12.6878
USD/CHF 1.1327
AUD/USD 0.6859
NZD/USD 0.6209
USD/DKK 5.4883
USD/SEK 7.3239
USD/NOK 6.3756
USD/TWD 32.360
USD/CNY 6.8307

Even Ley supermarket was at 12.46 yesterday, George.

[otayBill]

Just think George, if you moved from Otay, you could save a dime per dollar and not have to put up with the heat and eating dust in the summer and freezing at night in the winter.

Richsinc, you're obviously jealous of us Otay folks; the superior part of Tijuana.

[Miggiesmallz- TEXMEX]

Richsinc, you're obviously jealous of us Otay folks; the superior part of Tijuana.

HHAHAHAAA, friggin hilarious.