If you were thinking about ordering a glider from Europe any time soon, take a look at the latest exchange rates.

The US Dollar and the Euro just hit parity today. Essentially, a year ago a €150k K-21B would have cost about $178k. Today € = $. That's a huge shift.

1:1 Dollar to Euro is a rare opportunity to get more bang for your bucks...literally.

On Tuesday, July 12, 2022 at 1:49:47 PM UTC-5, bluej...@gmail.com wrote:
> If you were thinking about ordering a glider from Europe any time soon, take a look at the latest exchange rates.
>
> The US Dollar and the Euro just hit parity today. Essentially, a year ago a €150k K-21B would have cost about $178k. Today € = $. That's a huge shift.
>
> 1:1 Dollar to Euro is a rare opportunity to get more bang for your bucks....literally.
Shipping costs may be another matter. (I had the same idea as you.)

Doug
W24

On Tuesday, July 12, 2022 at 2:49:47 PM UTC-4, bluej...@gmail.com wrote:
> If you were thinking about ordering a glider from Europe any time soon, take a look at the latest exchange rates.
>
> The US Dollar and the Euro just hit parity today. Essentially, a year ago a €150k K-21B would have cost about $178k. Today € = $. That's a huge shift.
>
> 1:1 Dollar to Euro is a rare opportunity to get more bang for your bucks....literally.

What will it be when they build and deliver your glider 18-24 months (or longer)from now?
UH

> > 1:1 Dollar to Euro is a rare opportunity to get more bang for your bucks...literally.
> What will it be when they build and deliver your glider 18-24 months (or longer)from now?

The answer is to buy the Euros now and hold them until the glider has to be paid for. And if the Euro falls further, buy more.

On Tuesday, July 12, 2022 at 3:15:47 PM UTC-7, Mark Mocho wrote:
> > > 1:1 Dollar to Euro is a rare opportunity to get more bang for your bucks...literally.
> > What will it be when they build and deliver your glider 18-24 months (or longer)from now?
> The answer is to buy the Euros now and hold them until the glider has to be paid for. And if the Euro falls further, buy more.
And be prepared for a healthy price increase from the glider manufacturers shortly.

Buy used now -- if you can find what you want ....

On Wednesday, July 13, 2022 at 10:04:28 AM UTC-4, n5...@comcast.net wrote:
> On Tuesday, July 12, 2022 at 3:15:47 PM UTC-7, Mark Mocho wrote:
> > > > 1:1 Dollar to Euro is a rare opportunity to get more bang for your bucks...literally.
> > > What will it be when they build and deliver your glider 18-24 months (or longer)from now?
> > The answer is to buy the Euros now and hold them until the glider has to be paid for. And if the Euro falls further, buy more.
> And be prepared for a healthy price increase from the glider manufacturers shortly.

> > > > What will it be when they build and deliver your glider 18-24 months (or longer)from now?
> > > The answer is to buy the Euros now and hold them until the glider has to be paid for. And if the Euro falls further, buy more.

You don't have to buy euros. From my post a few years ago about my last new glider purchase 30 (!) years ago (i.e., before the euro). Still applies today, though the details might differ.
*******************
I was never much good at forecasting financial markets. So several months before delivery of my ASW 24 in late 1991, I began worrying that the exchange rate (D-mark) would move against me. So I bought a DM call option. I forget the amount but the contract almost covered what I owed Schleicher. It was slightly out of the money with a short-term expiration date so it seemed like cheap insurance. If the exchange rate remained the same or the DM weakened, I would lose only the small amount invested. But when the day arrived, the DM had appreciated a bit and my option was now slightly in the money. So I had a modest gain to offset the higher amount of US$ I would have to pay for my DMs. I was about to close out my position when I discovered that the type of option I had bought (European style?) allowed me to exercise through my brokerage account and actually take delivery of the underlying currency in any bank account I wished, in this case Schleicher's bank. Wow! I avoided various wire transfer fees plus currency conversion costs and got the "big bank" exchange rate. OK, the savings weren't huge: IIRC, on the order of $500 in total. But I was pretty pleased with myself. That was my last new glider.
*******************
So if you're contemplating buying a new glider and want to lock in today's exchange rate, you can. The only risk is what you pay for the option contract, which if you're clever should be a lot less than your exposure if you buy euros today. I could say that anyone who can afford a new glider at today's prices doesn't have to worry about money, but that's not always true. Longer option contracts will cost more but you could buy a shorter-term contract and see what develops, and just roll it out as appropriate.

Be advised that almost no one I spoke with at the major brokerage firm knew much about exercising the option vs. selling it and banking the profit (which is what the vast majority of option holders do). But they made some calls and came back with the answer. Schleicher sent me their bank account details and it all worked out. But you wouldn't have to exercise to protect yourself against the euro appreciating.

Also, I'm not advising anyone to invest in euro option contracts. But if you're going to need a whole bunch of euros in the future, it's one way of hedging.

Chip Bearden
JB

On Wednesday, July 13, 2022 at 3:14:53 PM UTC-7, chip.b...@gmail.com wrote:
> > > > > What will it be when they build and deliver your glider 18-24 months (or longer)from now?
> > > > The answer is to buy the Euros now and hold them until the glider has to be paid for. And if the Euro falls further, buy more.
> You don't have to buy euros. From my post a few years ago about my last new glider purchase 30 (!) years ago (i.e., before the euro). Still applies today, though the details might differ.
> *******************
> I was never much good at forecasting financial markets. So several months before delivery of my ASW 24 in late 1991, I began worrying that the exchange rate (D-mark) would move against me. So I bought a DM call option. I forget the amount but the contract almost covered what I owed Schleicher. It was slightly out of the money with a short-term expiration date so it seemed like cheap insurance. If the exchange rate remained the same or the DM weakened, I would lose only the small amount invested. But when the day arrived, the DM had appreciated a bit and my option was now slightly in the money. So I had a modest gain to offset the higher amount of US$ I would have to pay for my DMs. I was about to close out my position when I discovered that the type of option I had bought (European style?) allowed me to exercise through my brokerage account and actually take delivery of the underlying currency in any bank account I wished, in this case Schleicher's bank. Wow! I avoided various wire transfer fees plus currency conversion costs and got the "big bank" exchange rate. OK, the savings weren't huge: IIRC, on the order of $500 in total. But I was pretty pleased with myself. That was my last new glider.
> *******************
> So if you're contemplating buying a new glider and want to lock in today's exchange rate, you can. The only risk is what you pay for the option contract, which if you're clever should be a lot less than your exposure if you buy euros today. I could say that anyone who can afford a new glider at today's prices doesn't have to worry about money, but that's not always true. Longer option contracts will cost more but you could buy a shorter-term contract and see what develops, and just roll it out as appropriate.
>
> Be advised that almost no one I spoke with at the major brokerage firm knew much about exercising the option vs. selling it and banking the profit (which is what the vast majority of option holders do). But they made some calls and came back with the answer. Schleicher sent me their bank account details and it all worked out. But you wouldn't have to exercise to protect yourself against the euro appreciating.
>
> Also, I'm not advising anyone to invest in euro option contracts. But if you're going to need a whole bunch of euros in the future, it's one way of hedging.
>
> Chip Bearden
> JB

Another problem with options contracts is the limited time forward that you can purchase them. Glider deliveries now are 2-3 years while contracts can only be purchased about 6 months out.

Tom

On Wednesday, July 13, 2022 at 10:53:46 PM UTC-4, 2G wrote:
> On Wednesday, July 13, 2022 at 3:14:53 PM UTC-7, chip.b...@gmail.com wrote:
> > > > > > What will it be when they build and deliver your glider 18-24 months (or longer)from now?
> > > > > The answer is to buy the Euros now and hold them until the glider has to be paid for. And if the Euro falls further, buy more.
> > You don't have to buy euros. From my post a few years ago about my last new glider purchase 30 (!) years ago (i.e., before the euro). Still applies today, though the details might differ.
> > *******************
> > I was never much good at forecasting financial markets. So several months before delivery of my ASW 24 in late 1991, I began worrying that the exchange rate (D-mark) would move against me. So I bought a DM call option. I forget the amount but the contract almost covered what I owed Schleicher. It was slightly out of the money with a short-term expiration date so it seemed like cheap insurance. If the exchange rate remained the same or the DM weakened, I would lose only the small amount invested. But when the day arrived, the DM had appreciated a bit and my option was now slightly in the money. So I had a modest gain to offset the higher amount of US$ I would have to pay for my DMs. I was about to close out my position when I discovered that the type of option I had bought (European style?) allowed me to exercise through my brokerage account and actually take delivery of the underlying currency in any bank account I wished, in this case Schleicher's bank. Wow! I avoided various wire transfer fees plus currency conversion costs and got the "big bank" exchange rate. OK, the savings weren't huge: IIRC, on the order of $500 in total. But I was pretty pleased with myself. That was my last new glider.
> > *******************
> > So if you're contemplating buying a new glider and want to lock in today's exchange rate, you can. The only risk is what you pay for the option contract, which if you're clever should be a lot less than your exposure if you buy euros today. I could say that anyone who can afford a new glider at today's prices doesn't have to worry about money, but that's not always true. Longer option contracts will cost more but you could buy a shorter-term contract and see what develops, and just roll it out as appropriate.
> >
> > Be advised that almost no one I spoke with at the major brokerage firm knew much about exercising the option vs. selling it and banking the profit (which is what the vast majority of option holders do). But they made some calls and came back with the answer. Schleicher sent me their bank account details and it all worked out. But you wouldn't have to exercise to protect yourself against the euro appreciating.
> >
> > Also, I'm not advising anyone to invest in euro option contracts. But if you're going to need a whole bunch of euros in the future, it's one way of hedging.
> >
> > Chip Bearden
> > JB
> Another problem with options contracts is the limited time forward that you can purchase them. Glider deliveries now are 2-3 years while contracts can only be purchased about 6 months out.
>
> Tom
The part everyone ignores is that your existing gliders just went down in relative value. Why buy that 5 year old Ventus 2 when a Ventus 3 just got that much cheaper!

On 7/14/2022 9:16 AM, stephen.s...@gmail.com wrote:
....
>>> Also, I'm not advising anyone to invest in euro option contracts. But if you're going to need a whole bunch of euros in the future, it's one way of hedging.
>>>
>>> Chip Bearden
>>> JB
>> Another problem with options contracts is the limited time forward that you can purchase them. Glider deliveries now are 2-3 years while contracts can only be purchased about 6 months out.
>>
>> Tom
> The part everyone ignores is that your existing gliders just went down in relative value. Why buy that 5 year old Ventus 2 when a Ventus 3 just got that much cheaper!

Why? Because you can get that 5 year old Ventus 2 next week, but that shiny new Ventus 3
could take 2-3 years to get to you. Prices for used gliders in the US don't seem to be
much affected by new prices when the delivery times are long.

--
Eric Greenwell - USA
- "A Guide to Self-launching Sailplane Operation"
https://sites.google.com/site/motorgliders/publications

> Another problem with options contracts is the limited time forward that you can purchase them. Glider deliveries now are 2-3 years while contracts can only be purchased about 6 months out.
>
> Tom

Actually currency options can go out a little over a year. If you really wanted to go out longer, as expiration date approaches, you just sell (or let expire) the one you purchased at a profit, loss, or breakeven and buy a new one further out. Or maybe you decide at that point that you're comfortable with the remaining risk and don't need to hedge anymore.

But it does point to perhaps the biggest concern(s). These are not plain vanilla buy-and-forget investment products. There are different types with their own specific characteristics. And, obviously, the further out you go, the greater the premium (time value) will be. Now if you think the euro might recover 30% against the dollar when it comes time to pay for your new glider, it might be worth it to buy an option now.

To reiterate, I'm not recommending this, It worked well for me but the savings turned out to be modest over, IIRC, about six months. They could have been higher if the exchange rate had moved a lot more so in effect, I bought an insurance policy that I ended up making a few bucks on.

Chip Bearden
JB

On Friday, July 22, 2022 at 8:25:53 PM UTC-7, chip.b...@gmail.com wrote:
> > Another problem with options contracts is the limited time forward that you can purchase them. Glider deliveries now are 2-3 years while contracts can only be purchased about 6 months out.
> >
> > Tom
> Actually currency options can go out a little over a year. If you really wanted to go out longer, as expiration date approaches, you just sell (or let expire) the one you purchased at a profit, loss, or breakeven and buy a new one further out. Or maybe you decide at that point that you're comfortable with the remaining risk and don't need to hedge anymore.
>
> But it does point to perhaps the biggest concern(s). These are not plain vanilla buy-and-forget investment products. There are different types with their own specific characteristics. And, obviously, the further out you go, the greater the premium (time value) will be. Now if you think the euro might recover 30% against the dollar when it comes time to pay for your new glider, it might be worth it to buy an option now.
>
> To reiterate, I'm not recommending this, It worked well for me but the savings turned out to be modest over, IIRC, about six months. They could have been higher if the exchange rate had moved a lot more so in effect, I bought an insurance policy that I ended up making a few bucks on.
>
> Chip Bearden
> JB

One year is considerably less than the contract time for a new glider, which means you can't hedge the currency risk for the purchase. On the plus side, you DO fix the price of the glider, which is a definite hedge against inflation (the seller has already factored inflation into the price, however)..

Tom

Assuming you trust the manufacturer to be around to deliver your glider, every manufacturer I've dealt with will gladly take your money early, sometimes with a discount on the price too.

On Wednesday, July 27, 2022 at 12:57:31 AM UTC-7, Matthew Scutter wrote:
> Assuming you trust the manufacturer to be around to deliver your glider, every manufacturer I've dealt with will gladly take your money early, sometimes with a discount on the price too.

Right. Just like GP Gliders.

Tom