If you’re an exotic car connoisseur, no doubt you’ve been dreaming of the 2017 Bugatti Chiron that debuted last month at the Geneva Auto Show. The Chiron accelerates from 0-to-60 in 2.5 seconds and handles top speeds of 260 m.p.h. (And, let’s face it, in this baby, you’ll turn plenty of heads on the calles of Palma.) Only 500 Chirons will be produced for delivery next year; buyers are already lining up. Despite the €2.4 million price, Bugatti will not be offering any discounts. Yet, there is still a way to save money on this purchase.
Consider this… If you’re buying in euros using British sterling, the exchange rate today is approximately £1 to €1.28. Therefore, you would pay around £1,875,000. But, just six months ago, the pairing was £1 to €1.40. At that time, the purchase cost would have been £1,714,000. This is a remarkable difference of £161,000!
Many factors affect this change in rates, such as government actions, geopolitical issues and world financial movements. Looking to the near term, significant events such as the BREXIT referendum and the U.S. election, forebodes a certain volatile currency market. The pound will surely be under pressure.
With this in mind, how can you prepare for the purchase of your Chiron without losing money under these market conditions? One option is checking the services of currency exchange brokers, since some offer contracts that allow you to purchase currency at today’s rate for delivery in the future… even if the rates have moved against you. (It’s perfect for property transactions that will not be completed until a future date.) The rate you lock-in remains the same for the agreed term, so you are not vulnerable to adverse exchange rate movements.
Securing a forward rate requires a returnable 10% deposit. Should you decide to cancel the transaction, the deposit is normally refunded and certain fees may apply.
These type of products are also ideal when purchasing items abroad such as real estate, art and yachts, transferring pensions and other on-going personal payments, and moving international funds and investments.
A specialised currency exchange expert can provide more details on this type of possibilities and advise the best options to suit your specific circumstances. They are designed to save you money.
For more information, please contact a specialised currency exchange broker.
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This article was written on the 15th of March, 2016.