BajaNomad

Exchange rate purchasing power

Aldervale - 1-2-2016 at 07:15 AM

Howdy

Is there any real logic to waiting till me get into MX toward savings ?

We usual purchase food etc after we are travelling...

What about the big stuff like some new off road tires ?

Despite the different currency valuation I suspect the actual cost of big ticket items is much the same....

And then also Tires would need to have the DOT stamp we see in El Norte.

? Si o no ?

Aldervale

PS Anyone seen BFG At K 02 's for sale SOB ? :)

Sandlefoot - 1-2-2016 at 07:22 AM

The exchange rate does give a dollar holder greater buying power. The cost of most products here has remained the same. A taco is still 16 to 18 peso's. Gas went down the first of the year.

You can buy the same tires here that you can buy in the states. Tires here have traditionally been more than in the states, so you may need to be informed as to the cost in the states to make a deal here that is good for you.

Have a great trip!

All is well in La Paz

[Edited on 1-2-2016 by Sandlefoot]

BigWooo - 1-2-2016 at 07:28 AM

I've been buying my BFG AT tires in Cd. Constitucion at Frenomex. They are an "authorized" BFG dealer. I called BFG to confirm. Last set I bought, mounted and balanced, was about $45.00 a tire less expensive than in the U.S.

If you want to buy tires in BC or BCS, check the tire mfgr website, or call the company to see which shops are authorized to sell whatever type of tire you want to buy in BC or BCS, then call the shop for a price comparison to U.S. prices.

[Edited on 1-2-2016 by BigWooo]

Aldervale - 1-2-2016 at 07:36 AM

Sandlefoot and Bigwoo

Many thanks....I have actually considered driving down from Oregon to the Costco near the border and buying off road tires there......
but then I would need to find a place to store my new road tires during our time in MX and etc. and etc.

I will probably keep it simple and stupid....buy them at home and drive 1100 miles of asphalt to condition them.

Aldervale

bajaguy - 1-2-2016 at 08:44 AM

Get your pesos at bank ATM's located at banks, supermarkets (Commercial Mexicana has a great selection) and at COSTCO's in TJ or Ensenada.

A word of advice - BBVA Bancomer currently has the highest ATM use fees

Check with your ATM card issuer regarding reimbursement of ATM fees, and don't forget to tell them (and your credit card issuer) that you will be in Mexico

AKgringo - 1-2-2016 at 09:07 AM

Aldervale, Do a chalk line test on those new tires before you hit the road to see if you have the right PSI. I run oversize tires on a light weight vehicle, and tires shops ALWAYS over inflate them, even when I ask them not to.

I have not bought many auto parts and supplies SOB, but everything I saw in the stores seemed to be more expensive than in the US. I am surprised to hear about BFGs at a discount!

DENNIS - 1-2-2016 at 09:10 AM


Don't expect to pay less for any imported goods in Mexico. The price will reflect added import duty as well as the necessary adjustment for stores here to fill their inventory with goods which they themselves must buy with dollars.

weebray - 1-2-2016 at 09:16 AM

Quote: Originally posted by bajaguy  
Get your pesos at bank ATM's located at banks, supermarkets (Commercial Mexicana has a great selection) and at COSTCO's in TJ or Ensenada.

A word of advice - BBVA Bancomer currently has the highest ATM use fees

Check with your ATM card issuer regarding reimbursement of ATM fees, and don't forget to tell them (and your credit card issuer) that you will be in Mexico


I would add that if you had a Charles Schwab debit card you would pay no foreign transaction or atm fees at all. We get an exchange rate close to market at Santander Bank. There are other "fee free" options. As has been pointed out the cost of living has been lowered significantly in the past year. In January of 2015 we paid $543 for 8000 pesos, last week we paid $462 for 8000 pesos. Rents, medical costs and most locally produced items have not increased at that rate. Even the cost of basic construction materials including labor costs has been static. The only major changes have been made by the big box and grocery stores on imported items. A local market now gets 129 pesos for a pound of imported butter. This is up from about 70 pesos less than a year ago.

Today's rate

bajaguy - 1-2-2016 at 09:18 AM

Looks like 17.29 pesos to a dollar

Aldervale - 1-2-2016 at 10:25 AM

Yep on the air pressures.....I am a reserve Deputy on a North Oregon beach which allows car travel......LOTS of cars travel along with trucks which launch dories directly into the Pacific.

It can be a constant parade of woe and despair as folks drive their shiny new vehicles onto the sand beach and often into the surf which mysteriously "wasn't there before Officer...honest !"

Some of them remember to wash the Buick on the way back to suburbia.....

Aldervale

DENNIS - 1-2-2016 at 11:08 AM


At the ATMs I use here, the machine fee is 35Ps for withdrawing 7000.
When times get so bad that I have to be concerned about this, I'll start collecting aluminum cans.
As Terry mentioned above....Bancomer has a fee of 85Ps for the same transaction. The fees are on the screen for your approval before the transaction can proceed.

DENNIS - 1-2-2016 at 03:15 PM

Quote: Originally posted by soulpatch  
With rates being what they are I can withdraw 17,000+ at Banorte.
43.5 peso charge.


17,000? Really, Frank? You must mean at the window.

vandenberg - 1-2-2016 at 03:59 PM

We pay most of our stuff here by credit card, get the current exchange rate (which has been over 17) and get the 11/2% percent credit for using it.
Only way to go.:light::light:

Bajahowodd - 1-2-2016 at 04:28 PM

You absolutely need to notify your Credit/Debit card issuer that you will be out of the country, in Mexico. Past experience for me has been that the transactions will not be approved without prior notification.

DENNIS - 1-2-2016 at 05:05 PM


And....try through your bank to get an extra card in case the ATM eats one.

vandenberg - 1-2-2016 at 06:35 PM

Quote: Originally posted by Bajahowodd  
You absolutely need to notify your Credit/Debit card issuer that you will be out of the country, in Mexico. Past experience for me has been that the transactions will not be approved without prior notification.

Got to get the right card. We have the B of A travel card and never an issue being out of the country. Several other cards work the same way.

bajatrailrider - 1-2-2016 at 09:42 PM

Tires in the Ensanada area,much more money then U.S even with Exchange.The BFGs off road tires,I got at 4Wheel in Calif 102$ In Mex 209$ dollars.Also high tax rate in Mexico.The trick is Buy the tires at 4Wheel,dont let them mount them.They will charge 50$ apiece.Carry them out to Walmart 14$ to mount and Bal.

DENNIS - 1-3-2016 at 08:14 AM



I hope you mean WalMart USA. Mexico won't allow unmounted tires through the border.
I know the race teams aren't held to this, but Joe Citizen is. Been this way for a long time.

durrelllrobert - 1-3-2016 at 10:25 AM

BFGs are not manufactured in Mexico and as mentioned above the local distributors have to buy them with US$ (so much for the exchange rate) and then pay import duty on each one (about 13.79% of value) plus the IVA which is 16% of the out the door pricenation wide in Mexico.

In Oregon and California you only pay the local sales tax but in CA you also have to pay the mandatory tire disposal fee of $1.75 per tire. You will also pay more for mounting/ balancing in the states (and as DENNIS metioned they must be mounted to bring into Mexico) and most "sale" prices require you to purchase an extended warrantee even if you don't want it.

You need to weigh all of this to make your decision.

bajaguy - 1-3-2016 at 11:00 AM

Didn't think they had a sales tax in Oregon. Is that something new???

StuckSucks - 1-3-2016 at 11:03 AM

durrelllrobert - 1-3-2016 at 11:18 AM

Quote: Originally posted by bajaguy  
Didn't think they had a sales tax in Oregon. Is that something new???


No state sales tax in Oregon but each jurisdiction has the right to charge their own. Currently two jusisdictions have a 7.5% sales tax.

www.taxrates.com/‎

Bajahowodd - 1-3-2016 at 05:17 PM

Quote: Originally posted by durrelllrobert  
Quote: Originally posted by bajaguy  
Didn't think they had a sales tax in Oregon. Is that something new???


No state sales tax in Oregon but each jurisdiction has the right to charge their own. Currently two jusisdictions have a 7.5% sales tax.

www.taxrates.com/‎


Robert, your link does not work.

CortezBlue - 1-3-2016 at 05:36 PM

It's Funny, I bought down my CFE power bill with the lower Peso. So when I saw your headline, I thought you were talking about POWER bill.

Udo - 1-3-2016 at 06:09 PM
Quote: Originally posted by Sandlefoot  
Gas went down the first of the year.

To what???
I was in TJ yesterday afternoon and gas was at 11.35 Pesos per liter.

Alm - 1-3-2016 at 06:32 PM

Quote: Originally posted by DENNIS  

Don't expect to pay less for any imported goods in Mexico.

Yes.
Sadly, majority of goods - other than food items - fall into this category. Imported from either US or from China via US.

willardguy - 1-3-2016 at 06:54 PM

still a buyer's market at the local cantina's! :bounce:

Sandlefoot - 1-3-2016 at 06:56 PM

Quote: Originally posted by Udo  



Quote: Originally posted by Sandlefoot  
Gas went down the first of the year.

To what???
I was in TJ yesterday afternoon and gas was at 11.35 Pesos per liter.


Gas must be cheaper up there than it is here in La Paz. For the last year it has been 13.57 peso's per liter and it went down to something like 13.10 or so. I have only fueled once this year and do not remember exactly. (Don't know if it is age related or attention span!!!!)

All is well in La Paz

Happy Trails

Udo - 1-3-2016 at 07:41 PM

I don't remember if it was here of Facebook, but someone posted a PEMEX bulletin that Magna was going to drop to 6.35 Pesos per liter starting January 1.

Perhaps the stations never got the memo.

DENNIS - 1-3-2016 at 08:33 PM

Quote: Originally posted by Udo  
I don't remember if it was here of Facebook, but someone posted a PEMEX bulletin that Magna was going to drop to 6.35 Pesos per liter starting January 1.

Perhaps the stations never got the memo.


I'm sure they didn't get the memo. That was an April fools joke, or the equivalent here in Mexico.

Bajahowodd - 1-4-2016 at 05:50 PM

One thing that really burns my culo is that while crude prices are down to around $35 per barrel, and the US national average prices for gasoline are around, or under $2 per gallon, the folks in California are paying around $3 per gallon. The supposed reason is refinery maintenance or WTF. I absolutely believe that the California refiners are totally gaming the market.