U.S. Auto Dealers Looking North of Border to Snap Up Used-Car Bargains

(Bruce Constantineau — Vancouver Sun)

Consumer confidence could hurt new-car sales in final quarter of fiscal year

Bargain-priced “slightly used” cars will become a hot commodity in Canada as price-conscious buyers scoop them up and U.S. car dealers — armed with a stronger currency — prowl the Canadian market for deals.

That's the prediction from Canadian car-pricing expert Paul Timeoto, who expects a falling dollar to stir the interest of U.S. dealers in Canadian vehicles.

“The prospect of U.S. dealers coming up here to buy is looming very strongly now,” said Timeoto, president of online car-pricing-data firm CarCostCanada.com. “The dollar has only been below 90 cents US for a few weeks so it may take a little while for them to pay attention to our market. But it won't take long.”

He noted that until recently, Canadian car dealers took advantage of a strong Canadian dollar to buy used cars — less than one year old — in the U.S. and resell them in Canada.

“Dealers went down there and literally brought them back by the truckload and Canadians saved a lot of money that way,” Timeoto said. “But that situation has dried up now and the reverse is likely to happen.” Read more.