While the rest of the auto industry frets over potentially disruptive U.S. tariffs, a group of Canadian dealers is mining cross-border pricing differences to make a profit off of pickup trucks.
Their enterprise — dubbed Canadian Super Sellers — makes a 4 to 5 percent margin by taking trucks purchased at lower prices north of the border and selling them for a premium in the U.S.
At the sprawling Manheim Detroit auction house Thursday, on the outskirts of Motor City USA, the dealers offered nearly 1,100 trucks in the largest one-day truck consignment ever by a single seller.
Last year, the group exported more than 16,000 trucks and other vehicles to the U.S., said Michael Hymus, who heads the Picton, Ontario, venture.
Michael Hymus (Photo: Canadian Super Sellers)
“We are commodity traders,” he said. “This not just a little show we are putting on. It takes a lot of coordination.”
The group’s Canadian vehicle sales at the Detroit auction house reached $370 million last year, Hymus said.
The format involves a fairly standard form of arbitrage: Practitioners extract profit by exploiting the price differences between identical or similar goods, commodities or financial instruments sold in different markets.
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