Canadian dollar strength hits Twin Cities used car lots
This fall, more is turning on used car lots than the leaves on their trees. For decades, the American dollar has dominated its Canadian counterpart, but no more. Friday, $1 U.S. was worth just $.96 north of the border. The effect has trickled south to cars, used cars. Luther Brookdale Honda Used Car Manager Chris Ayd sees a difference in the auctions where dealers buy used cars for their lots.
“We’re seeing the prices up $500-$600-$700 a car versus what they were a couple of months ago and its gonna continue to go up, too.” Ayd says the strength of the Canadian dollar is resulting in more cross-border commerce. “I’d say we get 15 - 20 calls a week and the same amount of hits on the internet.” Coupled with slower retail sales on new cars, the Canadian demand is fueling a change in the “pre-owned” auto market.
Dealers like Westside Volkswagen in Saint Louis Park are soliciting trade-ins by mail from VW owners. Managers like Ayd understand the dilemma. “People are keeping their cars longer, or giving them to their kids. So, there is a real shortage of cars, low mileage cars and that’s what we like to sell, low mileage cars.” The bottom line may be that it is a very good time to get top dollar for a low mileage trade-in.
After all those years of American dollar dominance, no one knows when the economy will put some wind back under the greenback.