How low will the Canadian $ go?

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Clem

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I have a 2012 Tacoma that's 4 years old and beginning to show its age. Things are starting to break on a regular basis. I just had to replace a cracked head and the power steering pump went a couple of months ago

I would like try to nurse it for another year and give them some time to sort out the issues on the new 2016, but CDN $ had now dropped below the 74c mark and, depending on the source its headed further south. I've read everything between 65c to 54c at the end of 2016.

Since these things are made in Texas it stands to reason that that could mean a $10-15k hike in the price. Just trying to decide if I should bite the bullet now or take a chance and wait.
 
Unless something drastic happens to US economy, or OPEC war against North American oil production stops, dont expect the CAD to get any better. 65c? I dont know about that. Only thing that can kick us that low is massive housing correction and subsequent systematic crash of credit debt.

Its a catch 22. If US raises interest rates and we dont follow, we signalled to everyone that we dont have trust in our own economy. If we do raise interest rates that everything else is based on, those overpriced houses all of a sudden become unaffordable. Credit lending gets more expensive, companies stop borrowing for future expansion projects and sit in a holding pattern, unwilling to risk things.
It becomes a self full filing prophecy as $$ that should be flowing into the economy gets bottles up in accounts.

I know that will be my response. Tougher economic outlooks abd i cut back on spending and start saving more $$ for those rainy days.

Better question is, how does a 3 year old vehicle have its engine head crack, and why are you contemplating buying a newer model of the same companies vehicle?
 
Clem said:
I have a 2012 Tacoma that's 4 years old and beginning to show its age. Things are starting to break on a regular basis. I just had to replace a cracked head and the power steering pump went a couple of months ago

I would like try to nurse it for another year and give them some time to sort out the issues on the new 2016, but CDN $ had now dropped below the 74c mark and, depending on the source its headed further south. I've read everything between 65c to 54c at the end of 2016.

Since these things are made in Texas it stands to reason that that could mean a $10-15k hike in the price. Just trying to decide if I should bite the bullet now or take a chance and wait.
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If these trucks are as disposable as that, you might want to look at something less expensive, or better quality.
 
Red_Liner740 said:
Better question is, how does a 3 year old vehicle have its engine head crack, and why are you contemplating buying a newer model of the same companies vehicle?
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Well, that is actually a very good question. My wife asked the same thing :)

This was that previous model that was made in Mexico and had the old 4.0l engine. To be honest its been a bit of a dog. I wouldn't exactly say this model was known for Toyota quality and if you go to any of the boards there are a lot of complains about heads warping or cracking.

The new model is made in Texas, that's probably not saying a lot, but has the 3.5l engine that's shared with the other models across their line up and its supposed to be a lot better.

I'm not 100% firm on Toyota. I've driven the Nissan and the new GMC Canyon. The Nissan was very rough and its getting a major update soon so there would be a large depreciation on that one. I would always regret not waiting. The Canyon was surprisingly nice. It was quieter, rode better and more powerful that the Toyota and I though things like the switches seemed more robust but its a GM.

I don't really want full size as I only use it for towing a little 6x10 trailer and use the bed for tools, gas, stands, etc.

I did drive the new F150 with the small eco-boost but it was a rough ride. It would shake the fillings out of your teeth. Its almost like they put the aluminium body on it but didn't change the suspension to compensate for the lightness. I think it would be hard to live with on a daily basis.

The problem is the current truck is now out of warranty and when they did the head the billed Toyota back $2800. I'm just worried about the head on the other side
 
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raginduck said:
Prices go up that much and people will start to look at buying out of the US.
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I was thinking about that as well.

From what I can gather and I may be wrong, dealer in the US have been instructed not to sell to Canadians although I'm sure there are ways around that with a local address but would the warranty be supported in Canada.

The $ is so low right now that when you do the conversion you don't save a lot either.

We can only hope OPEC cut production and the tar sands get fired up again.
 
4 year old truck falling apart?

Not sure if serious.


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Baggsy said:
If these trucks are as disposable as that, you might want to look at something less expensive, or better quality.
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Maybe it's my problem. I'm sort of blinkered into thinking "Toyota Quality". I'm a prefect foil for advertisers :)

Maybe Ford or GM is just as good now and they are meeting in the middle on quality.

Seems like everything is disposable now.
 
caboose56 said:
4 year old truck falling apart?

Not sure if serious.


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Well, I didn't say it was falling apart. I've had a couple of major issues. This model and particularly that version of the motor has some common issues and there are a lot of similar complaints.

The decision I have to make is do I nurse it for another year and hope that nothing else fails as the warranty has expired, or change it now when it may be cheaper than it is next year.

Heads on the bigger Toyota engines have never been their strong point. Remember the Supra?
 
The bottom will be 65 cents IMO. I have moved a lot of my investments to US stocks and indexes. Make money as they rise and make money as our dollar sinks.

There will be some lag in product pricing but expect it to catch up at some point, don't wait too long.
 
yur playin the speculatters game. if u have the luxery of of ponderin this questian, than means yous dont need it now.

my bestest advise witth my warmest feelings is dont buy what u dont need now--regarduless if CND $ goes up or down in a year.
 
Clem said:
Well, I didn't say it was falling apart. I've had a couple of major issues. This model and particularly that version of the motor has some common issues and there are a lot of similar complaints.

The decision I have to make is do I nurse it for another year and hope that nothing else fails as the warranty has expired, or change it now when it may be cheaper than it is next year.

Heads on the bigger Toyota engines have never been their strong point. Remember the Supra?
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"Things are starting to break on a regular basis"

So it's falling apart but not falling apart?

Ok, keep dumping money into it to keep it on the road for another year.


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backmarkerducati said:
The bottom will be 65 cents IMO. I have moved a lot of my investments to US stocks and indexes. Make money as they rise and make money as our dollar sinks.

There will be some lag in product pricing but expect it to catch up at some point, don't wait too long.
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Thanks. I'l going to back and take another look.
 
If we go below .70 there is a lot of bad things that will happen in our economy. The bottom could well be .65

I spend a bit of time in the US and have been looking at cars to leave down there, but the exchange on the dollar makes almost every deal look ugly. 90% of my income is in CDN $.
 
I do some Forex trading in my investment group and for what it’s worth and its only my opinion….

I would tend to agree with BackMarkerDucati. I think it’s going to drop a little more in 2016.

The broker we deal with thinks there could be another 5% depreciation over the next year unless there is a significant reduction in oil oversupply. Justin is also depending on short term currency flows to remain the primary source of financing the proposed deficit. Those are relatively unstable and have potential to quickly reverse, meaning the Canadian dollar is vulnerable to any change in foreign investor sentiment and dependant on those investments and the loony could drop significantly with a pull out.

That being said, it’s all a bit of a crap shoot, no-one knows. I would spend it as you can’t take it with you. No-one is going to be lying on their death bed worrying about that $10k they could have saved :)
 
crankcall said:
If we go below .70 there is a lot of bad things that will happen in our economy. The bottom could well be .65

I spend a bit of time in the US and have been looking at cars to leave down there, but the exchange on the dollar makes almost every deal look ugly. 90% of my income is in CDN $.
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Yes. Its horrible at the moment. I just bought some parts this morning and couldn't believe how much more i had to pay in CDN when paypal did the conversion
 
I realize these truly are 'first world problems' , I was speaking with a girl acquaintance that works cruise ships, they are largely dependent on CDN customers in the winter, and all transactions are in US dollars. Its ugly. FLA is offering some pretty negotiable deals to lure CDN's down. I'm seeing lots of friends rethinking vacation.

I import a lot of product for our business from the US, and Russia and China and its all in US dollars. You can imagine telling customers your order went up another 6% from when you ordered last month, so sorry. To say nothing of a 40% swing in 5 yrs.
 
Dont worry, as soon as there is a conflict in the middle east oil prices will go back up. :)


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So a cheapish new vehicle is about 400$ a month which is 4800$ a year. Is there 4800$ a year breaking on it? I highly doubt it.

Personally I say make sure you have CAA and a couple grand in the bank.

I've never understood this thing where something breaks on their vehicle and all of a sudden they're off to the dealership.
 
Baggsy said:
If these trucks are as disposable as that, you might want to look at something less expensive, or better quality.
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That was my thought. Both our cars are now over 10 years old and although this has been a bad year for nitpick issues, in the grand scheme of things it was all stuff I could fix myself. Brakes, ball joints, etc. If I had a 3 year old car with those sorts of issues I'd never buy from that manufacturer ever again.

crankcall said:
If we go below .70 there is a lot of bad things that will happen in our economy. The bottom could well be .65.
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And a lot of good things can happen too, don't forget - manufacturing loves a low dollar. Yes, a lot of manufacturing here in Ontario took a beating in the last five or six years but I've seen it making a rapid rebound – one of my old customers in Uxbridge for example cannot keep up with production demand that is coming from the USA since they are now able to offer a basically 30% discount vs the US prices they'd pay domestically.

crankcall said:
I realize these truly are 'first world problems' , I was speaking with a girl acquaintance that works cruise ships, they are largely dependent on CDN customers in the winter, and all transactions are in US dollars.
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Ill concur with that. We were regular cruisers with 8 cruises over the period of the last 5 years under our belts, but it'll soon be 1 year since our last cruise and we have nothing booked. They are discounting the cruises themselves a little for Canadians but since everything else is still priced in USD, we're not doing squat. If and when they decide to slash and burn to get Canadian business back (and I don't see signs of that yet) then we will bite, but until then the majorly of our vacation money will be spent on this side of the border.

Speaking of which, that's another good thing for the economy, touching on my last paragraph above.
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