In Canada, where the value of money is not the same as America, there are sometimes situations when American car dealers are capitalizing on the Canadian dollar by buying up many used cars and GMC Trucks and bringing them back to the US for sale. Thunder Bay GMC Truck Dealerships, back in 2015, reported so much of this activity that they were having trouble keeping their new and used GMC Trucks inventory up to par. The Edmonton Sun newspaper in Canada wrote a lengthy article covering the subject and was used in our research to write this post on behalf of your new GMC Truck car dealer in Thunder Bay ON.
“They’re seeing crazy money. There’s a lot of U.S. buyers right now who are travelling to Edmonton and other Canadian areas in order to buy,” said Kyle Peterson, owner and general manager of one Car and Truck Dealer in Ontario. “It’s making it harder and harder to keep trucks because of the value they’re seeing.” You may think of this trend as nothing but beneficial for all parties, but that really isn’t the case since they are buying them from auction as well as straight from the GMC Truck Dealer lots. “American dealerships will pay almost full retail price for low-mileage trucks and SUVs at Canadian auction — often in carrier-loads of seven vehicles — before turning around and selling them in the U.S. at almost the same price. The American dealers are seeing discounts on Canadian vehicles of up to 30 per cent.”
This total phenomenon makes pricing trade in cars and trucks difficult given the higher prices that the wholesale market is providing when the demand is so high there. “You don’t want to dissuade customers, you still want to have a good selection of cars, but the incentive is a lot less,” he said. “We’re enjoying the ride right now but it’s going to happen where the bubble is going to burst and a lot of people are going to be stuck with inventory they’ve put a lot of money into.”