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Old 04-02-2012, 09:41 PM   #48
Nardi330
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actually not quite.

once fx is hedged, they know immediately the currency cost and will then set price according to that. their margin is then set unless their price is changed and then the cycle continues for their next hedge.

in theory, as currancy flutuate they would "lose some and gain some" but in practice there is no gain or loss as currency no longer flutuates once hedged.

also as AUD gains, manufacturers usually add more features than reduce price becos it stablises the used price. providing cheap finance deals would give the same effect: cheaper overall cost while maintain stable used car price.
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